RDP 2013-08: International Business Cycles with Complete Markets Equation

m ˜ j ( s t )=β s t+1 S π( s t+1 | s t ) m ˜ j ( s t , s t+1 ) ×( 1δ+ϕ( i j ( s t , s t+1 ) k j ( s t ) ) ϕ ( i j ( s t , s t+1 ) k j ( s t ) ) i j ( s t , s t+1 ) k j ( s t ) ) +β s t+1 S π( s t+1 | s t ) γ ˜ ( s t , s t+1 ) z j ( s t , s t+1 ) f 1 ( k j ( s t ), n j ( s t , s t+1 ) ). MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceiabbeaamAraaiqad2gagaacamaaBaaaleaacaWGQbaabeaakmaabmaabaGaam4CamaaCaaaleqabaGaamiDaaaaaOGaayjkaiaawMcaaiabg2da9iabek7aInaaqafabaGaeqiWda3aaeWaaeaacaWGZbWaaSbaaSqaaiaadshacqGHRaWkcaaIXaaabeaaiiaakiab=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@DA6A@