RDP 2013-10: Stochastic Terms of Trade Volatility in Small Open Economies
Equation (11)
P
t
C
t
+
I
t
N
T
+
I
t
H
+
d
t
(
1
+
r
)
≤
W
t
L
t
+
R
t
N
T
K
t
N
T
+
R
t
H
K
t
H
+
d
t
+
1
−
ψ
2
(
d
t
+
1
−
d
)
2
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