RDP 9006: Wage Contracts, Sticky Prices and Exchange Rate Volatility: Evidence from Nine Industrial Countries Equation (4b)

w t − t−3 w t = ( 1/n )( t−2 w n−1o t−1 − t−3 w n−1o t−1 + t−1 w no t − t−3 w no t ) +( ( 1−θ )/n )( ( t−2 p c t − t−2 p c t−1 )−( t−3 p c t − t−3 p c t−1 ) ) −( θ/n )( t−2 p c t−1 − t−3 p c t−1 )+( n−2 )( θ/n )( p c t−2 − t−3 p c t−2 ) +( n−1 )( θ/n )( p C t−1 − t−3 p c t−1 ). MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaqbaeqabuqaaa aabaGaae4DamaaBaaaleaacaqG0baabeaaiiaakiab=jHiTmaaBaaa leaacaqG0bGae8NeI0Iaae4maaqabaGccaqG3bWaaSbaaSqaaiaabs haaeqaaOGaeyypa0dabaWaaeWaaeaacaaIXaGaai4laiaab6gaaiaa wIcacaGLPaaadaqadaqaamaaBaaaleaacaqG0bGae8NeI0IaaeOmaa qabaGccaqG3bWaaWbaaSqabeaacaqGUbGae8NeI0IaaGymaiaad+ga aaGcdaWgaaWcbaGaaeiDaiab=jHiTiaabgdaaeqaaOGae8NeI0YaaS baaSqaaiaabshacqWFsislcaqGZaaabeaakiaabEhadaahaaWcbeqa aiaab6gacqWFsislcaaIXaGaam4BaaaakmaaBaaaleaacaqG0bGae8 NeI0IaaeymaaqabaGccqGHRaWkdaWgaaWcbaGaaeiDaiab=jHiTiaa bgdaaeqaaOGaae4DamaaCaaaleqabaGaaeOBaiaad+gaaaGcdaWgaa WcbaGaaeiDaaqabaGccqWFsisldaWgaaWcbaGaaeiDaiab=jHiTiaa bodaaeqaaOGaae4DamaaCaaaleqabaGaaeOBaiaad+gaaaGcdaWgaa WcbaGaaeiDaaqabaaakiaawIcacaGLPaaaaeaacqGHRaWkdaqadaqa amaabmaabaGaaGymaiab=jHiTiaabI7aaiaawIcacaGLPaaacaGGVa GaaeOBaaGaayjkaiaawMcaamaabmaabaWaaeWaaeaadaWgaaWcbaGa aeiDaiab=jHiTiaabkdaaeqaaOGaaeiCamaaCaaaleqabaGaae4yaa aakmaaBaaaleaacaqG0baabeaakiab=jHiTmaaBaaaleaacaqG0bGa e8NeI0IaaeOmaaqabaGccaqGWbWaaWbaaSqabeaacaqGJbaaaOWaaS baaSqaaiaabshacqWFsislcaqGXaaabeaaaOGaayjkaiaawMcaaiab =jHiTmaabmaabaWaaSbaaSqaaiaabshacqWFsislcaqGZaaabeaaki aabchadaahaaWcbeqaaiaabogaaaGcdaWgaaWcbaGaaeiDaaqabaGc cqWFsisldaWgaaWcbaGaaeiDaiab=jHiTiaabodaaeqaaOGaaeiCam aaCaaaleqabaGaae4yaaaakmaaBaaaleaacaqG0bGae8NeI0Iaaeym aaqabaaakiaawIcacaGLPaaaaiaawIcacaGLPaaaaeaacqWFsislda qadaqaaiaabI7acaqGVaGaaeOBaaGaayjkaiaawMcaamaabmaabaWa aSbaaSqaaiaabshacqWFsislcaqGYaaabeaakiaabchadaahaaWcbe qaaiaabogaaaGcdaWgaaWcbaGaaeiDaiab=jHiTiaabgdaaeqaaOGa e8NeI0YaaSbaaSqaaiaabshacqWFsislcaqGZaaabeaakiaabchada ahaaWcbeqaaiaabogaaaGcdaWgaaWcbaGaaeiDaiab=jHiTiaabgda aeqaaaGccaGLOaGaayzkaaGaey4kaSYaaeWaaeaacaqGUbGae8NeI0 IaaeOmaaGaayjkaiaawMcaamaabmaabaGaaeiUdiaab+cacaqGUbaa caGLOaGaayzkaaWaaeWaaeaacaqGWbWaaWbaaSqabeaacaqGJbaaaO WaaSbaaSqaaiaabshacqWFsislcaqGYaaabeaakiab=jHiTmaaBaaa leaacaqG0bGae8NeI0Iaae4maaqabaGccaqGWbWaaWbaaSqabeaaca qGJbaaaOWaaSbaaSqaaiaabshacqWFsislcaqGYaaabeaaaOGaayjk aiaawMcaaaqaaiabgUcaRmaabmaabaGaaeOBaiab=jHiTiaabgdaai aawIcacaGLPaaadaqadaqaaiaabI7acaqGVaGaaeOBaaGaayjkaiaa wMcaamaabmaabaGaaeiCamaaCaaaleqabaGaae4qaaaakmaaBaaale aacaqG0bGae8NeI0IaaeymaaqabaGccqWFsisldaWgaaWcbaGaaeiD aiab=jHiTiaabodaaeqaaOGaaeiCamaaCaaaleqabaGaae4yaaaakm aaBaaaleaacaqG0bGae8NeI0IaaeymaaqabaaakiaawIcacaGLPaaa caGGUaaaaaaa@DD05@