RDP 2013-06: Estimating and Identifying Empirical BVAR-DSGE Models for Small Open Economies Equation

[\begin{matrix} Q^{L^{'}} R^{L - 1} & 0 \\ 0 & Q^{S^{'}} R^{S - 1} \end{matrix}] [\begin{matrix} y_{t}^{L} \\ y_{t}^{S} \end{matrix}] = Σ_{i = 1}^{p} [\begin{matrix} Q^{L^{'}} R^{L - 1} & 0 \\ 0 & Q^{S^{'}} R^{S - 1} \end{matrix}] [\begin{matrix} Φ_{i}^{L} & 0 \\ Φ_{i}^{S L} & Φ_{i}^{S} \end{matrix}] * [\begin{matrix} y_{t - i}^{L} \\ y_{t - i}^{S} \end{matrix}] + [\begin{matrix} 1 & 0 \\ Q^{S^{'}} R^{S - 1} κ R^{L} Q^{L} & 1 \end{matrix}] [\begin{matrix} ξ_{t}^{L} \\ ξ_{t}^{S} \end{matrix}] .