RDP 8611: The Effectiveness of Fiscal Policy in an Economy with Anticipatory Wage Contracts Equation (34)

\begin{array}{l} ({\hat{π}}_{1} - {\hat{π}}_{0}) = \frac{α δ D_{0}}{e^{{\hat{m}}_{1}} (1 - ξ_{1})} \\ ({\hat{b}}_{1} - {\hat{b}}_{o}) = \frac{e^{- {\hat{b}}_{1}} (1 - α) δ D_{o}}{n + (1 - α) (θ - ρ)} \end{array}