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RDP 9311: Agency Costs, Balance Sheets and the Business Cycle
Equation (7)
p
=
p
r
o
b
(
r
a
>
r
l
(
1
−
e
)
)
=
z
¯
−
(
1
−
e
)
r
l
z
¯
−
z
_
i
f
(
1
−
e
)
r
l
≥
z
_
=
1
o
t
h
e
r
w
i
s
e
MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=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@69F1@