RDP 2011-04: Assessing Some Models of the Impact of Financial Stress Upon Business Cycles Equation (8)

R t = 1 − ( 1 − R t − 1 ) R t − 2 − ( 1 − R t − 1 ) ( 1 − R t − 2 ) ( 1 − ∧ t − 1 ) − R t − 1 R t − 2 ∨ t − 1 , MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=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@6919@