RDP 2011-06: Does Equity Mispricing Influence Household and Firm Decisions? Equation (14)

Δ y 1 t = A ˜ 12 0 Δ y 2 t A ˜ 11 2 Δ y 1 t 1 A ˜ 12 2 Δ y 2 t 1 + u t P MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaeuiLdqecbe Gaa8xEamaaBaaaleaacaaIXaGaamiDaaqabaGccqGH9aqpcqGHsisl ceWGbbGbaGaadaqhaaWcbaGaaGymaiaaikdaaeaacaaIWaaaaOGaeu iLdqKaa8xEamaaBaaaleaacaaIYaGaamiDaaqabaGccqGHsislceWG bbGbaGaadaqhaaWcbaGaaGymaiaaigdaaeaacaaIYaaaaOGaeuiLdq Kaa8xEamaaBaaaleaacaaIXaGaamiDaiabgkHiTiaaigdaaeqaaOGa eyOeI0IabmyqayaaiaWaa0baaSqaaiaaigdacaaIYaaabaGaaGOmaa aakiabfs5aejaa=LhadaWgaaWcbaGaaGOmaiaadshacqGHsislcaaI XaaabeaakiabgUcaRiaadwhadaqhaaWcbaGaamiDaaqaaiaadcfaaa aaaa@5BD8@