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

Δ y 22 t = − B 21 0 Δ y ˜ 1 t − [ α * β ′ ] 21 y ˜ 1 t − 1 − [ α * β ′ ] 22 y 22 t − 1 − B 21 2 Δ y ˜ 1 t − 1 − B 22 2 Δ y 22 t − 1 + ε t T , b MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaacqqHuo arieqacaWF5bWaaSbaaSqaaiaaikdacaaIYaGaamiDaaqabaGccqGH 9aqpcqGHsislcaWGcbWaa0baaSqaaiaaikdacaaIXaaabaGaaGimaa aakiabfs5aejqa=LhagaacamaaBaaaleaacaaIXaGaamiDaaqabaGc cqGHsisldaWadaqaaiabeg7aHnaaCaaaleqabaGaaiOkaaaakiabek 7aInaaCaaaleqabaaccaGae4NmGikaaaGccaGLBbGaayzxaaWaaSba aSqaaiaaikdacaaIXaaabeaakiqa=LhagaacamaaBaaaleaacaaIXa GaamiDaiabgkHiTiaaigdaaeqaaaGcbaGaeyOeI0YaamWaaeaacqaH XoqydaahaaWcbeqaaiaacQcaaaGccqaHYoGydaahaaWcbeqaaiab+j diIcaaaOGaay5waiaaw2faamaaBaaaleaacaaIYaGaaGOmaaqabaGc caWF5bWaaSbaaSqaaiaaikdacaaIYaGaamiDaiabgkHiTiaaigdaae qaaOGaeyOeI0IaamOqamaaDaaaleaacaaIYaGaaGymaaqaaiaaikda aaGccqqHuoarceWF5bGbaGaadaWgaaWcbaGaaGymaiaadshacqGHsi slcaaIXaaabeaaaOqaaiabgkHiTiaadkeadaqhaaWcbaGaaGOmaiaa ikdaaeaacaaIYaaaaOGaeuiLdqKaa8xEamaaBaaaleaacaaIYaGaaG OmaiaadshacqGHsislcaaIXaaabeaakiabgUcaRiabew7aLnaaDaaa leaacaWG0baabaGaamivaiaacYcacaWGIbaaaaaaaa@7E45@