RDP 9006: Wage Contracts, Sticky Prices and Exchange Rate Volatility: Evidence from Nine Industrial Countries
Equation (9f)
Min
θ
E
t
−
1
{
δ
[
(
w
1
t
−
t
−
1
w
1
t
)
−
(
w
1
t
O
−
t
−
1
w
1
t
O
)
]
2
+
δ
2
[
w
1
t
+
1
−
t
−
1
w
1
t
+
1
)
−
(
w
1
t
+
1
O
−
t
−
1
w
1
t
+
1
O
)
]
2
}
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