RDP 2011-05: Terms of Trade Shocks: What are they and what Do they Do?
Equation (1)
[
w
t
d
t
]
=
α
x
t
+
∑
i
=
1
p
A
i
[
w
t
−
i
d
t
−
i
]
+
B
[
ε
t
w
ε
t
d
]
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