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

Γ_{2} = [\begin{array}{l} 0_{1 \times 16} \\ 0_{1 \times 16} \\ 0_{1 \times 16} \\ 0_{1 \times 16} \\ 0_{1 \times 16} \\ 0_{1 \times 16} \\ 0_{1 \times 16} \\ 0_{1 \times 16} \\ 0_{1 \times 16} \\ 0_{1 \times 16} \\ 0_{1 \times 16} \\ 0_{1 \times 16} \\ 0_{1 \times 8} & \frac{1 - η}{(1 + η) γ} & 0_{1 \times 3} & {(1 + η)}^{- 1} & 0_{1 \times 3} \\ 0_{1 \times 13} & μ_{f}^{d} & 0_{1 \times 2} \\ 0_{1 \times 14} & μ_{f}^{m} & 0 \\ 0_{1 \times 15} & 1 \end{array}];