RDP 2013-10: Stochastic Terms of Trade Volatility in Small Open Economies Equation (24)

a t = ρ a a t 1 + ε t a MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaamyyamaaBa aaleaacaWG0baabeaaiiaakiab=1da9iabeg8aYnaaBaaaleaacaWG HbaabeaakiaadggadaWgaaWcbaGaamiDaiabgkHiTiaaigdaaeqaaO Gaey4kaSIaeqyTdu2aa0baaSqaaiaadshaaeaacaWGHbaaaaaa@4442@