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

[ log ( z 1 ( s t ) ) log ( z 2 ( s t ) ) ] = [ 0.95 0 0 0.95 ] [ log ( z 1 ( s t 1 ) ) log ( z 2 ( s t 1 ) ) ] + [ ε 1 ( s t ) ε 2 ( s t ) ] . MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=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@8368@