RDP 2011-06: Does Equity Mispricing Influence Household and Firm Decisions? Equation (19)

Δ y_{2 j, t} = ϕ_{1 j}^{'} Δ y_{1 t - 1} + ϕ_{2 j}^{'} ξ_{1 t - 1} + ϕ_{3 j}^{'} z_{t} + φ_{2 j, t}