RDP 9006: Wage Contracts, Sticky Prices and Exchange Rate Volatility: Evidence from Nine Industrial Countries
Equation (4a)
w
t+n
−
1
−
t+n
−
4
w
t+n
−
1
=
(
1
/
n
)
(
t+n
−
3
w
n
−
1o
t+n
−
2
−
t+n
−
4
w
n
−
1o
t+n
−
2
+
t+n
−
2
w
no
t+n
−
1
−
t+n
−
4
w
no
t+n
−
1
)
+
(
(
1
−
θ
)
/
n
)
(
t+n
−
3
p
c
t+n
−
1
−
t+n
−
4
p
c
t+n
−
1
)
−
(
(
1
−
θ
)
/
n
)
(
t+n
−
3
p
c
t+n
−
2
−
t+n
−
4
p
c
t+n
−
2
)
+
(
n
−
2
)
(
θ/n
)
(
p
c
t+n
−
2
−
t+n
−
4
p
c
t+n
−
3
)
+
(
n
−
1
)
(
θ/n
)
(
p
c
t+n
−
2
−
t+n
−
4
p
c
t+n
−
3
)
−
(
θ/n
)
(
t+n
−
3
p
c
t+n
−
2
−
t+n
−
4
p
c
t+n
−
2
)
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