RDP 2010-01: Reconciling Microeconomic and Macroeconomic Estimates of Price Stickiness Equation (A33)

\begin{matrix} {\hat{r}}_{j, t} = {\hat{r}}_{j, t - 1} + {\hat{π}}_{j, t} - {\hat{π}}_{t} & j = 1, ..., N \end{matrix}