RDP 9311: Agency Costs, Balance Sheets and the Business Cycle Equation (8)

z ¯ − ( 1 − e ) r l z ¯ − z _ > ( w ¯ w s ) 1 − γ i f   ( 1 − e ) r l ≥ z _ 1 > ( w ¯ w s ) 1 − γ o t h e r w i s e MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=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@6A0B@