RDP 2015-11: Unprecedented Changes in the Terms of Trade: Online Appendix Equation (18)

ln z t = ( 1 ρ z ) ln z + ρ z ln z t 1 + u z , t MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaciiBaiaac6 gacaWG6bWaaSbaaSqaaiaadshaaeqaaOGaeyypa0ZaaeWaaeaacaaI XaGaeyOeI0IaeqyWdi3aaSbaaSqaaiaadQhaaeqaaaGccaGLOaGaay zkaaGaciiBaiaac6gacaWG6bGaey4kaSIaeqyWdi3aaSbaaSqaaiaa dQhaaeqaaOGaciiBaiaac6gacaWG6bWaaSbaaSqaaiaadshacqGHsi slcaaIXaaabeaakiabgUcaRiaadwhadaWgaaWcbaGaamOEaiaacYca caWG0baabeaaaaa@5258@