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RDP 2013-06: Estimating and Identifying Empirical BVAR-DSGE Models for Small Open Economies
Equation
y
t
∗
−
h
∗
1
+
h
∗
y
t
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1
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=
1
1
+
h
∗
E
t
(
y
t
+
1
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−
σ
∗
(
1
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h
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1
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h
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(
i
t
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E
t
π
t
+
1
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σ
∗
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1
−
h
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1
+
h
∗
(
1
−
ρ
g
)
ε
g
,
t
∗
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