RDP 2013-10: Stochastic Terms of Trade Volatility in Small Open Economies Equation (1)

q t = ρ q q t 1 + e σ q , t u q , t MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaamyCamaaBa aaleaacaWG0baabeaakiabg2da9iabeg8aYnaaBaaaleaacaWGXbaa beaakiaadghadaWgaaWcbaGaamiDaiabgkHiTiaaigdaaeqaaOGaey 4kaSIaamyzamaaCaaaleqabaGaeq4Wdm3aaSbaaWqaaiaadghacaGG SaGaamiDaaqabaaaaOGaamyDamaaBaaaleaacaWGXbGaaiilaiaads haaeqaaaaa@4A31@