RDP 2015-11: Unprecedented Changes in the Terms of Trade: Online Appendix Equation (86)

0 = − τ t I + q N , t υ t [ 1 − ϒ ( j N , t z t ( 1 + z I ) j N , t − 1 ) − ϒ ′ ( j N , t z t ( 1 + z I ) j N , t − 1 ) j N , t z t ( 1 + z I ) j N , t − 1 ] + E t { β λ t + 1 q N , t + 1 υ t + 1 λ t z t + 1 ( 1 + z I ) ϒ ′ ( j N , t + 1 z t + 1 ( 1 + z I ) j N , t ) ( j N , t + 1 z t + 1 ( 1 + z I ) j N , t ) 2 } MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaacaaIWa Gaeyypa0JaeyOeI0IaeqiXdq3aa0baaSqaaiaadshaaeaacaWGjbaa aOGaey4kaSIaamyCamaaBaaaleaacaWGobGaaiilaiaadshaaeqaaO GaeqyXdu3aaSbaaSqaaiaadshaaeqaaOWaamWaaeaacaaIXaGaeyOe I0IaeuO0de6aaeWaaeaadaWcaaqaaiaadQgadaWgaaWcbaGaamOtai aacYcacaWG0baabeaakiaadQhadaWgaaWcbaGaamiDaaqabaGcdaqa daqaaiaaigdacqGHRaWkcaWG6bWaaSbaaSqaaiaadMeaaeqaaaGcca GLOaGaayzkaaaabaGaamOAamaaBaaaleaacaWGobGaaiilaiaadsha cqGHsislcaaIXaaabeaaaaaakiaawIcacaGLPaaacqGHsislcuqHsp qOgaqbamaabmaabaWaaSaaaeaacaWGQbWaaSbaaSqaaiaad6eacaGG SaGaamiDaaqabaGccaWG6bWaaSbaaSqaaiaadshaaeqaaOWaaeWaae aacaaIXaGaey4kaSIaamOEamaaBaaaleaacaWGjbaabeaaaOGaayjk aiaawMcaaaqaaiaadQgadaWgaaWcbaGaamOtaiaacYcacaWG0bGaey OeI0IaaGymaaqabaaaaaGccaGLOaGaayzkaaWaaSaaaeaacaWGQbWa aSbaaSqaaiaad6eacaGGSaGaamiDaaqabaGccaWG6bWaaSbaaSqaai aadshaaeqaaOWaaeWaaeaacaaIXaGaey4kaSIaamOEamaaBaaaleaa caWGjbaabeaaaOGaayjkaiaawMcaaaqaaiaadQgadaWgaaWcbaGaam OtaiaacYcacaWG0bGaeyOeI0IaaGymaaqabaaaaaGccaGLBbGaayzx aaaabaGaey4kaSIaamyramaaBaaaleaacaWG0baabeaakmaacmaaba GaeqOSdi2aaSaaaeaacqaH7oaBdaWgaaWcbaGaamiDaiabgUcaRiaa igdaaeqaaOGaamyCamaaBaaaleaacaWGobGaaiilaiaadshacqGHRa WkcaaIXaaabeaakiabew8a1naaBaaaleaacaWG0bGaey4kaSIaaGym aaqabaaakeaacqaH7oaBdaWgaaWcbaGaamiDaaqabaGccaWG6bWaaS baaSqaaiaadshacqGHRaWkcaaIXaaabeaakmaabmaabaGaaGymaiab gUcaRiaadQhadaWgaaWcbaGaamysaaqabaaakiaawIcacaGLPaaaaa GafuO0deQbauaadaqadaqaamaalaaabaGaamOAamaaBaaaleaacaWG obGaaiilaiaadshacqGHRaWkcaaIXaaabeaakiaadQhadaWgaaWcba GaamiDaiabgUcaRiaaigdaaeqaaOWaaeWaaeaacaaIXaGaey4kaSIa amOEamaaBaaaleaacaWGjbaabeaaaOGaayjkaiaawMcaaaqaaiaadQ gadaWgaaWcbaGaamOtaiaacYcacaWG0baabeaaaaaakiaawIcacaGL PaaadaqadaqaamaalaaabaGaamOAamaaBaaaleaacaWGobGaaiilai aadshacqGHRaWkcaaIXaaabeaakiaadQhadaWgaaWcbaGaamiDaiab gUcaRiaaigdaaeqaaOWaaeWaaeaacaaIXaGaey4kaSIaamOEamaaBa aaleaacaWGjbaabeaaaOGaayjkaiaawMcaaaqaaiaadQgadaWgaaWc baGaamOtaiaacYcacaWG0baabeaaaaaakiaawIcacaGLPaaadaahaa WcbeqaaiaaikdaaaaakiaawUhacaGL9baaaaaa@CB4B@