RDP 9006: Wage Contracts, Sticky Prices and Exchange Rate Volatility: Evidence from Nine Industrial Countries Equation

N=cov( p C t − t−1 p C t ) ( t p t+1 − t−1 p t+1 ) +δcov( p C t+1 − t−1 p C t+1 ) ( t+1 p t+2 − t−1 p t+2 ) + δ 2 cov( p C t+2 − t−1 p C t+2 ) ( t+2 p t+3 − t−1 p t+3 ) ⋮ + δ n−2 cov( p C t+n−2 − t−1 p C t+n−2 ) ( t+n−2 p t+n−1 − t−1 p t+n−1 ) D=var( p C t − t−1 p C t )+ ∑ i=1 n−2 δ i var( p C t+i − t−1 p C t+i ) MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaacaqGob Gaeyypa0Jaae4yaiaab+gacaqG2bGaaiikaiaabchadaahaaWcbeqa aiaaboeaaaGcdaWgaaWcbaGaaeiDaaqabaGccqGHsisldaWgaaWcba GaaeiDaiabgkHiTiaaigdaaeqaaOGaaeiCamaaCaaaleqabaGaae4q aaaakmaaBaaaleaacaqG0baabeaakiaacMcacaGGOaWaaSbaaSqaai aabshaaeqaaOGaaeiCamaaBaaaleaacaqG0bGaey4kaSIaaGymaaqa baGccqGHsisldaWgaaWcbaGaaeiDaiabgkHiTiaaigdaaeqaaOGaae iCamaaBaaaleaacaqG0bGaey4kaSIaaGymaaqabaGccaGGPaaabaGa ey4kaSIaeqiTdqMaae4yaiaab+gacaqG2bGaaiikaiaabchadaahaa WcbeqaaiaaboeaaaGcdaWgaaWcbaGaaeiDaiabgUcaRiaaigdaaeqa aOGaeyOeI0YaaSbaaSqaaiaabshacqGHsislcaaIXaaabeaakiaabc hadaahaaWcbeqaaiaaboeaaaGcdaWgaaWcbaGaaeiDaiabgUcaRiaa igdaaeqaaOGaaiykaiaacIcadaWgaaWcbaGaaeiDaiabgUcaRiaaig daaeqaaOGaaeiCamaaBaaaleaacaqG0bGaey4kaSIaaGOmaaqabaGc cqGHsisldaWgaaWcbaGaaeiDaiabgkHiTiaaigdaaeqaaOGaaeiCam aaBaaaleaacaqG0bGaey4kaSIaaGOmaaqabaGccaGGPaaabaGaey4k aSIaeqiTdq2aaWbaaSqabeaacaaIYaaaaOGaae4yaiaab+gacaqG2b GaaiikaiaabchadaahaaWcbeqaaiaaboeaaaGcdaWgaaWcbaGaaeiD aiabgUcaRiaaikdaaeqaaOGaeyOeI0YaaSbaaSqaaiaabshacqGHsi slcaaIXaaabeaakiaabchadaahaaWcbeqaaiaaboeaaaGcdaWgaaWc baGaaeiDaiabgUcaRiaaikdaaeqaaOGaaiykaiaacIcadaWgaaWcba GaaeiDaiabgUcaRiaaikdaaeqaaOGaaeiCamaaBaaaleaacaqG0bGa ey4kaSIaaG4maaqabaGccqGHsisldaWgaaWcbaGaaeiDaiabgkHiTi aaigdaaeqaaOGaaeiCamaaBaaaleaacaqG0bGaey4kaSIaaG4maaqa baGccaGGPaaabaGaeSO7I0eabaGaey4kaSIaeqiTdq2aaWbaaSqabe aacaqGUbGaeyOeI0IaaGOmaaaakiaabogacaqGVbGaaeODaiaacIca caqGWbWaaWbaaSqabeaacaqGdbaaaOWaaSbaaSqaaiaabshacqGHRa WkcaqGUbGaeyOeI0IaaGOmaaqabaGccqGHsisldaWgaaWcbaGaaeiD aiabgkHiTiaaigdaaeqaaOGaaeiCamaaCaaaleqabaGaae4qaaaakm aaBaaaleaacaqG0bGaey4kaSIaaeOBaiabgkHiTiaaikdaaeqaaOGa aiykaiaacIcadaWgaaWcbaGaaeiDaiabgUcaRiaab6gacqGHsislca aIYaaabeaakiaabchadaWgaaWcbaGaaeiDaiabgUcaRiaab6gacqGH sislcaaIXaaabeaakiabgkHiTmaaBaaaleaacaqG0bGaeyOeI0IaaG ymaaqabaGccaqGWbWaaSbaaSqaaiaabshacqGHRaWkcaqGUbGaeyOe I0IaaGymaaqabaGccaGGPaaabaGaaeiraiabg2da9iaabAhacaqGHb GaaeOCaiaacIcacaqGWbWaaWbaaSqabeaacaqGdbaaaOWaaSbaaSqa aiaabshaaeqaaOGaeyOeI0YaaSbaaSqaaiaabshacqGHsislcaaIXa aabeaakiaabchadaahaaWcbeqaaiaaboeaaaGcdaWgaaWcbaGaaeiD aaqabaGccaGGPaGaey4kaSYaaabCaeaacqaH0oazdaahaaWcbeqaai aabMgaaaGccaqG2bGaaeyyaiaabkhacaGGOaGaaeiCamaaCaaaleqa baGaae4qaaaakmaaBaaaleaacaqG0bGaey4kaSIaaeyAaaqabaGccq GHsisldaWgaaWcbaGaaeiDaiabgkHiTiaaigdaaeqaaOGaaeiCamaa CaaaleqabaGaae4qaaaakmaaBaaaleaacaqG0bGaey4kaSIaaeyAaa qabaGccaGGPaaaleaacaqGPbGaeyypa0JaaGymaaqaaiaab6gacqGH sislcaaIYaaaniabggHiLdaaaaa@F990@