RDP 2018-05: Do Interest Rates Affect Business Investment? Evidence from Australian Company-level Data Equation (5)

I i,t K i,t−1 = α 1 I i,t−1 K i,t−2 + α 2 k i,t−2 + β 0 Δ y i,t + β 1 Δ y i,t−1 + β 3 Δ y i,t−2 + γ 0 Δu c i,t + γ 1 Δu c i,t−1 + γ 2 u c i,t−2 + ω i + τ t + ε i,t MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=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@9D45@