Smith, Ron (contributor); Gylfi Zoega (contributor) - 2007
the growth of China and India.
3
This approach follows the factor augmented VAR literature e.g. Bernanke et al. (2005 …,13,1
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it it t it it it t i t t
it it it
ucxfdxax bxfu ef
eu ep ε
1− −
−−
Δ= Δ+ + − +Δ
+Δ +Δ … country:
1,1112,13 1
()
it i t i i i t i t i t i i t i it it
ucfdabf u ef eu ep ε
−− − − −
Δ=Δ+ + − +Δ+Δ +Δ +. (13)
The …