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RDP 2013-08: International Business Cycles with Complete Markets
Equation
E
t
[
(
c
1
t
+
1
−
b
c
1
t
−
χ
n
1
t
+
1
1
+
η
1
+
η
)
−
σ
]
=
Ψ
(
ω
1
;
x
t
)
E
t
[
(
c
2
t
+
1
−
b
c
2
t
−
χ
n
2
t
+
1
1
+
η
1
+
η
)
−
σ
]
=
Ψ
(
ω
2
;
x
t
)
Λ
1
t
=
β
E
t
[
Λ
1
t
+
1
R
1
t
+
1
]
=
Ψ
(
ω
3
;
x
t
)
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