Christiano, Lawrence J. (contributor); … - 2007
Research. Mailing address: Department of Economics, Northwestern
University, 2001 Sheridan Road, Evanston, Illinois 60208, USA … 69 1344 0
Internet
http://www.ecb.int
Fax
+49 69 1344 6000
Telex
411 144 ecb d
All rights reserved.
Any reproduction … autoregression:
s
t
= Ps
t−1
+u
t
,Eu
t
u
0
t
= D, (23)
9
Here, we use the fact that an entrepreneur’s rate of utilization, u
t
, is …