Coenen, Günter (contributor); McAdam, Peter (contributor); … - 2007
H
or with probability 1 − ξ
X
, depending on whether the firm sells its differentiated
output in the domestic or the … foreign market.
Defining as P
H,f,t
the domestic price of good f and as P
X,f,t
its foreign price denominated
in foreign …,t
=
˜
P
H,f,t
and
˜
P
X,t
=
˜
P
X,f,t
, depending on the market of
destination. Those firms which do not receive permission …