... varieties of tradable and nontraded goods, PT,t(i) and PN,t(i), the demand functions for each individual variety of tradable and nontraded goods,cT,t(i) and cN,t(i), and the consumption-based ... Section 3, and it implies that the values of σ, a, and η remain the same while ψ0= 2.1 and ψ1= −0.12.Relative standard deviations for our model with separable preferences in consumption and leisure ... Azki,t−1+εki,t,where i = {U.S., ROW } and k = {mf, sv}; ROW stands for rest of world, mf for manu-facturing and sv for services. εki,represents the innovation to zki and has standard deviationσki....