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RDP 2013-09: Terms of Trade Shocks and Incomplete Information
Equation (4)
M
t
=
(
1
−
ρ
m
)
μ
+
ρ
m
m
t
−
1
+
ε
t
m
;
ε
t
m
∼
N
(
0
,
σ
m
2
)
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