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A continuous probability distribution of a random variable whose logarithm is normally distributed.

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Covariance of Log-Normal Variables

In Obstfeld and Rogoff (2000), formula (12) states the following: $$ W = (\frac{\phi}{\phi-1}) \frac{E\{K(L^\nu)\}}{E\{\frac{L}{P}C^{-\rho}\}} $$ where $\phi$, $\rho$ and $\nu$ are parameters, $E$ i …
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