Vetlov, Igor (contributor); Warmedinger, Thomas (contributor) - 2006
taxation. Similar to the GDP deflator, in the case of wages there is a second level term
entering the dynamic equation. This … rate:
r
YeLSR
1
0
*
ϕ
ϕ= ,
[2.7]
where ϕ
0
> 0 and ϕ
1
< 0 are coefficients.
The equilibrium levels of exports (X …