Fazio, Giorgio; MacDonald, Ronald; Melitz, Jacques - Department of Economics, Adam Smith Business School - 2007
exchange rate is computed for each im-
porting country, i, based on the nominal exchange rates found in the WDI (2003) and a … subscripts:
ln (m
ij
)
t
= a
o
+a
t
+a
1
ln (A
i
Y
j
)
t
+a
2
ln ( )
t
+a
3
ln E
it
+a
M
+a
X
+a
G
G
ijt
+ε
ijt …,
(9)
i
GDP
i
CPI
P/P
M
c
Z
X
c
Z
a
o
in this equation is a constant, a
t
is a time fixed effect for all periods except …