RDP 9803: Forward-Looking Behaviour and Credibility: Some Evidence and Implications for Policy
Equation (B1.8)
Δ
w
p
i
t
=
α
8
−
0.10
(
0.04
)
(
w
p
i
t
−
1
−
w
p
i
t
−
1
t
r
e
n
d
)
+
0.36
Δ
w
p
i
t
−
1
+
[
0.00
]
0.22
Δ
w
p
i
t
−
2
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