RDP 2013-10: Stochastic Terms of Trade Volatility in Small Open Economies Equation (3)

Y i t = v + A ( L ) Y i t + B ( L ) X i t + u i t MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaamywamaaBa aaleaacaWGPbGaamiDaaqabaaccaGccqWF9aqpcaWG2bGaey4kaSIa amyqamaabmaabaGaamitaaGaayjkaiaawMcaaiaadMfadaWgaaWcba GaamyAaiaadshaaeqaaOGaey4kaSIaamOqamaabmaabaGaamitaaGa ayjkaiaawMcaaiaadIfadaWgaaWcbaGaamyAaiaadshaaeqaaOGaey 4kaSIaamyDamaaBaaaleaacaWGPbGaamiDaaqabaaaaa@4CDE@