RBA Annual Conference – 2018 Equation (F1)

( r E,t − r C,t )( 1− ∑ j α j,t )= ∑ i∈D ( r A,i,t − r C,t ) β i,t − ∑ j∈D ( r L,j,t − r C,t ) α j,t +( f t − c t ) + ∑ i∉D ( r A,i,t − r C,t ) β i,t − ∑ j∉D ( r L,j,t − r C,t ) α j,t − ∑ i p i,t ( 1+ r A,i,t ) β i,t