RDP 2010-01: Reconciling Microeconomic and Macroeconomic Estimates of Price Stickiness Equation (A23)

{\hat{i}}_{t} = ρ_{i} {\hat{i}}_{t - 1} + (1 - ρ_{i}) (ϕ_{π} {\hat{π}}_{t} + ϕ_{g} {\hat{g}}_{t}) + ε_{i, t}