RDP 2010-01: Reconciling Microeconomic and Macroeconomic Estimates of Price Stickiness Equation (A34)

\begin{matrix} {\hat{r}}_{j, t}^{+} = {\hat{r}}_{j, t} + θ_{j} ({\hat{r}}_{j, t - 1}^{+} - {\hat{r}}_{j, t - 1}) & j = 1, ..., N, \end{matrix}