RDP 2010-02: Learning in an Estimated Small Open Economy Model Equation (2)

\begin{array}{l} ν_{t}^{d} = ρ_{d} ν_{t - 1}^{d} + ε_{t}^{d} \\ ε_{t}^{d} \sim N (0, σ_{d}^{2}) \end{array}