Andersen, Torben M. (contributor); … - 2008
disfavour of country i in the sense that the
relative price of its export good decreases. However, this works to shift demand ….2 Households
2.2.1 Consumption and bond holdings
Household h in country i has the utility function
Et
1X
=0
1Cit+ (h … lower-case letters
denote (log-)deviations from steady-state values of corresponding upper-case variables (xt
dXt=X ln(Xt=X …