RDP 9707: Internationalisation and Pricing Behaviour: Some Evidence for Australia Equation (3)

Δ {\tilde{R}}_{i, t} = (ρ - 1) {\tilde{R}}_{i, t - 1} + \sum_{j = 1}^{J} β_{j} Δ {\tilde{R}}_{i, t - j} + {\tilde{u}}_{i, t}