Skip to content
RDP 2013-08: International Business Cycles with Complete Markets
Equation
m
˜
j
(
s
t
)
=
β
∑
s
t
+
1
∈
S
π
(
s
t
+
1
|
s
t
)
m
˜
j
(
s
t
,
s
t
+
1
)
×
(
1
−
δ
+
ϕ
(
i
j
(
s
t
,
s
t
+
1
)
k
j
(
s
t
)
)
−
ϕ
′
(
i
j
(
s
t
,
s
t
+
1
)
k
j
(
s
t
)
)
i
j
(
s
t
,
s
t
+
1
)
k
j
(
s
t
)
)
+
β
∑
s
t
+
1
∈
S
π
(
s
t
+
1
|
s
t
)
γ
˜
(
s
t
,
s
t
+
1
)
z
j
(
s
t
,
s
t
+
1
)
f
1
(
k
j
(
s
t
)
,
n
j
(
s
t
,
s
t
+
1
)
)
.
MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceiabbeaamAraaiqad2gagaacamaaBaaaleaacaWGQbaabeaakmaabmaabaGaam4CamaaCaaaleqabaGaamiDaaaaaOGaayjkaiaawMcaaiabg2da9iabek7aInaaqafabaGaeqiWda3aaeWaaeaacaWGZbWaaSbaaSqaaiaadshacqGHRaWkcaaIXaaabeaaiiaakiab=Xha8jaadohadaahaaWcbeqaaiaadshaaaaakiaawIcacaGLPaaaceWGTbGbaGaadaWgaaWcbaGaamOAaaqabaGcdaqadaqaaiaadohadaahaaWcbeqaaiaadshaaaGccaGGSaGaam4CamaaBaaaleaacaWG0bGaey4kaSIaaGymaaqabaaakiaawIcacaGLPaaaaSqaaiaadohadaWgaaadbaGaamiDaiabgUcaRiaaigdaaeqaaSGae8hcI4Saam4uaaqab0GaeyyeIuoaaOqaaiabgEna0oaabmaabaGaaGymaiabgkHiTiabes7aKjabgUcaRiabew9aMnaabmaabaWaaSaaaeaacaWGPbWaaSbaaSqaaiaadQgaaeqaaOWaaeWaaeaacaWGZbWaaWbaaSqabeaacaWG0baaaOGaaiilaiaadohadaWgaaWcbaGaamiDaiabgUcaRiaaigdaaeqaaaGccaGLOaGaayzkaaaabaGaam4AamaaBaaaleaacaWGQbaabeaakmaabmaabaGaam4CamaaCaaaleqabaGaamiDaaaaaOGaayjkaiaawMcaaaaaaiaawIcacaGLPaaacqGHsislcuaHvpGzgaqbamaabmaabaWaaSaaaeaacaWGPbWaaSbaaSqaaiaadQgaaeqaaOWaaeWaaeaacaWGZbWaaWbaaSqabeaacaWG0baaaOGaaiilaiaadohadaWgaaWcbaGaamiDaiabgUcaRiaaigdaaeqaaaGccaGLOaGaayzkaaaabaGaam4AamaaBaaaleaacaWGQbaabeaakmaabmaabaGaam4CamaaCaaaleqabaGaamiDaaaaaOGaayjkaiaawMcaaaaaaiaawIcacaGLPaaadaWcaaqaaiaadMgadaWgaaWcbaGaamOAaaqabaGcdaqadaqaaiaadohadaahaaWcbeqaaiaadshaaaGccaGGSaGaam4CamaaBaaaleaacaWG0bGaey4kaSIaaGymaaqabaaakiaawIcacaGLPaaaaeaacaWGRbWaaSbaaSqaaiaadQgaaeqaaOWaaeWaaeaacaWGZbWaaWbaaSqabeaacaWG0baaaaGccaGLOaGaayzkaaaaaaGaayjkaiaawMcaaaqaaiabgUcaRiabek7aInaaqafabaGaeqiWda3aaeWaaeaacaWGZbWaaSbaaSqaaiaadshacqGHRaWkcaaIXaaabeaakiab=Xha8jaadohadaahaaWcbeqaaiaadshaaaaakiaawIcacaGLPaaaaSqaaiaadohadaWgaaadbaGaamiDaiabgUcaRiaaigdaaeqaaSGae8hcI4Saam4uaaqab0GaeyyeIuoakiqbeo7aNzaaiaWaaeWaaeaacaWGZbWaaWbaaSqabeaacaWG0baaaOGaaiilaiaadohadaWgaaWcbaGaamiDaiabgUcaRiaaigdaaeqaaaGccaGLOaGaayzkaaGaamOEamaaBaaaleaacaWGQbaabeaakmaabmaabaGaam4CamaaCaaaleqabaGaamiDaaaakiaacYcacaWGZbWaaSbaaSqaaiaadshacqGHRaWkcaaIXaaabeaaaOGaayjkaiaawMcaaiaadAgadaWgaaWcbaGaaGymaaqabaGcdaqadaqaaiaadUgadaWgaaWcbaGaamOAaaqabaGcdaqadaqaaiaadohadaahaaWcbeqaaiaadshaaaaakiaawIcacaGLPaaacaGGSaGaamOBamaaBaaaleaacaWGQbaabeaakmaabmaabaGaam4CamaaCaaaleqabaGaamiDaaaakiaacYcacaWGZbWaaSbaaSqaaiaadshacqGHRaWkcaaIXaaabeaaaOGaayjkaiaawMcaaaGaayjkaiaawMcaaiaac6caaaaa@DA6A@