RDP 2013-06: Estimating and Identifying Empirical BVAR-DSGE Models for Small Open Economies Equation

i t = θ i i t 1 + ( 1 θ i ) ( θ π π t + ( θ y + θ d y ) y t θ d y y t 1 ) + ε i , t . MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=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@7541@