RDP 2013-10: Stochastic Terms of Trade Volatility in Small Open Economies Equation (7)

C t F + e q t C t H + P N T C t N 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 MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaam4qamaaDa aaleaacaWG0baabaGaamOraaaakiabgUcaRiaadwgadaahaaWcbeqa aiaadghadaWgaaadbaGaamiDaaqabaaaaOGaam4qamaaDaaaleaaca WG0baabaGaamisaaaakiabgUcaRiaadcfadaahaaWcbeqaaiaad6ea caWGubaaaOGaam4qamaaDaaaleaacaWG0baabaGaamOtaiaadsfaaa GccqGHRaWkcaWGjbWaa0baaSqaaiaadshaaeaacaWGobGaamivaaaa kiabgUcaRiaadMeadaqhaaWcbaGaamiDaaqaaiaadIeaaaGccqGHRa WkcaWGKbWaaSbaaSqaaiaadshaaeqaaOWaaeWaaeaacaaIXaGaey4k aSIaamOCaaGaayjkaiaawMcaaiabgsMiJkaadEfadaWgaaWcbaGaam iDaaqabaGccaWGmbWaaSbaaSqaaiaadshaaeqaaOGaey4kaSIaamOu amaaDaaaleaacaWG0baabaGaamOtaiaadsfaaaGccaWGlbWaa0baaS qaaiaadshaaeaacaWGobGaamivaaaakiabgUcaRiaadkfadaqhaaWc baGaamiDaaqaaiaadIeaaaGccaWGlbWaa0baaSqaaiaadshaaeaaca WGibaaaOGaey4kaSIaamizamaaBaaaleaacaWG0bGaey4kaSIaaGym aaqabaGccqGHsisldaWcaaqaaiabeI8a5bqaaiaaikdaaaWaaeWaae aacaWGKbWaaSbaaSqaaiaadshacqGHRaWkcaaIXaaabeaakiabgkHi TiaadsgaaiaawIcacaGLPaaadaahaaWcbeqaaiaaikdaaaaaaa@7ACA@