RDP 2013-10: Stochastic Terms of Trade Volatility in Small Open Economies Equation (14)

φ t j = β E t [ ( 1 − δ ) φ t + 1 j + R t j C t + 1 − σ P t + 1 ] MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaeqOXdO2aa0 baaSqaaiaadshaaeaacaWGQbaaaGGaaOGae8xpa0JaeqOSdiMaamyr amaaBaaaleaacaWG0baabeaakmaadmaabaWaaeWaaeaacaaIXaGaey OeI0IaeqiTdqgacaGLOaGaayzkaaGaeqOXdO2aa0baaSqaaiaadsha cqGHRaWkcaaIXaaabaGaamOAaaaakiabgUcaRiaadkfadaqhaaWcba GaamiDaaqaaiaadQgaaaGcdaWcaaqaaiaadoeadaqhaaWcbaGaamiD aiabgUcaRiaaigdaaeaacqGHsislcqaHdpWCaaaakeaacaWGqbWaaS baaSqaaiaadshacqGHRaWkcaaIXaaabeaaaaaakiaawUfacaGLDbaa aaa@5884@