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RDP 9502: Price Stickiness and Inflation
Equation (12)
and
S
K
S
=
[
α
(
3
μ
1
σ
1
2
+
μ
1
3
)
+
(
1
−
α
)
(
3
μ
2
σ
2
2
+
μ
2
3
)
]
/
S
D
S
3
.
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