RDP 2001-04: Measuring the Real Exchange Rate: Pitfalls and Practicalities Equation (7)

Δre r t = β 1 + β 2 re r t1 + β 3 tot+ β 4 ( r t1 r t1 )+ β 5 Δto t t + ε t MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYfdmGievaebbnrfi fHhDYfgasaacH8srps0lbbf9q8WrFfeuY=Hhbbf9v8qqaqFr0xc9pk 0xbba9q8WqFfea0=yr0RYxir=Jbba9q8aq0=yq=He9q8qqQ8frFve9 Fve9Ff0dmeaabaqaciGacaGaaeqabaWaaeaaeaaakeaacqqHuoarca WGYbGaamyzaiaadkhadaWgaaWcbaGaamiDaaqabaGccqGH9aqpcqaH YoGydaWgaaWcbaGaaGymaaqabaGccqGHRaWkcqaHYoGydaWgaaWcba GaaGOmaaqabaGccaWGYbGaamyzaiaadkhadaWgaaWcbaGaamiDaiab gkHiTiaaigdaaeqaaOGaey4kaSIaeqOSdi2aaSbaaSqaaiaaiodaae qaaOGaamiDaiaad+gacaWG0bGaey4kaSIaeqOSdi2aaSbaaSqaaiaa isdaaeqaaOWaaeWaaeaacaWGYbWaaSbaaSqaaiaadshacqGHsislca aIXaaabeaakiabgkHiTiaadkhadaqhaaWcbaGaamiDaiabgkHiTiaa igdaaeaacqGHxiIkaaaakiaawIcacaGLPaaacqGHRaWkcqaHYoGyda WgaaWcbaGaaGynaaqabaGccqqHuoarcaWG0bGaam4BaiaadshadaWg aaWcbaGaamiDaaqabaGccqGHRaWkcqaH1oqzdaWgaaWcbaGaamiDaa qabaaaaa@6962@