RDP 9006: Wage Contracts, Sticky Prices and Exchange Rate Volatility: Evidence from Nine Industrial Countries Equation (9f)

Min θ   E t−1 {δ [( w 1 t − t−1 w 1 t )−( w 1 t O − t−1 w 1 t O )] 2 + δ 2 [ w 1 t+1 − t−1 w 1 t+1 )−( w 1 t+1 O − t−1 w 1 t+1 O )] 2 } MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaWaaCbeaeaaca qGnbGaaeyAaiaab6gaaSqaaiabeI7aXbqabaGccaaMc8Uaaeyramaa BaaaleaacaqG0bGaeyOeI0IaaGymaaqabaGccaGG7bGaeqiTdqMaai 4waiaacIcacaqG3bWaaWbaaSqabeaacaaIXaaaaOWaaSbaaSqaaiaa bshaaeqaaOGaeyOeI0YaaSbaaSqaaiaabshacqGHsislcaaIXaaabe aakiaabEhadaahaaWcbeqaaiaaigdaaaGcdaWgaaWcbaGaaeiDaaqa baGccaGGPaGaeyOeI0IaaiikaiaabEhadaahaaWcbeqaaiaaigdaaa GcdaWgaaWcbaGaaeiDaaqabaGcdaahaaWcbeqaaiaab+eaaaGccqGH sisldaWgaaWcbaGaaeiDaiabgkHiTiaaigdaaeqaaOGaae4DamaaCa aaleqabaGaaGymaaaakmaaBaaaleaacaqG0baabeaakmaaCaaaleqa baGaae4taaaakiaacMcacaGGDbWaaWbaaSqabeaacaaIYaaaaOGaey 4kaSIaeqiTdq2aaWbaaSqabeaacaaIYaaaaOGaai4waiaabEhadaah aaWcbeqaaiaaigdaaaGcdaWgaaWcbaGaaeiDaiabgUcaRiaaigdaae qaaOGaeyOeI0YaaSbaaSqaaiaabshacqGHsislcaaIXaaabeaakiaa bEhadaahaaWcbeqaaiaaigdaaaGcdaWgaaWcbaGaaeiDaiabgUcaRi aaigdaaeqaaOGaaiykaiabgkHiTiaacIcacaqG3bWaaWbaaSqabeaa caaIXaaaaOWaaSbaaSqaaiaabshacqGHRaWkcaaIXaaabeaakmaaCa aaleqabaGaae4taaaakiabgkHiTmaaBaaaleaacaqG0bGaeyOeI0Ia aGymaaqabaGccaqG3bWaaWbaaSqabeaacaaIXaaaaOWaaSbaaSqaai aabshacqGHRaWkcaaIXaaabeaakmaaCaaaleqabaGaae4taaaakiaa cMcacaGGDbWaaWbaaSqabeaacaaIYaaaaOGaaiyFaaaa@8543@