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RDP 9607: Towards an Understanding of Australia's Co-Movement with Foreign Business Cycles
Equation (2)
Δ
x
t
=
α
+
Σ
δ
j
Δ
t
o
t
t
−
j
+
Σ
κ
j
Δ
r
e
r
t
−
j
+
Σ
η
j
Δ
x
t
−
j
+
Σ
γ
j
Δ
y
t
−
j
d
c
+
Σ
χ
j
Δ
y
t
−
j
f
+
β
x
t
−
1
+
ϕ
y
t
−
1
d
c
+
θ
y
t
−
1
f
+
ψ
TREND
+
ε
t
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