SEMAINE D'ETUDE SUR LE ROLE DE L ANALYSE ECONOMETRIQUE ETC. 934

Determination of ©. and n

524. In the present case, to determine the constants ©, and
n. we have the two relations

(524

(524-2)

whence

(524-3)

524-4)

and therefore

vs 24

| ey v © ,
524-5) [0 = 7

leu ‘

an implicit equation which determines »# as a function
and 6.

It can easily be verified that even in the very simple case
where 3(0) is assumed to be of the form (520-1), the determination
 of ©, and n is subject to a very large margin of error if the
value of Yc is near that of ® and © itself is not very accurately
bnown

, Allais - pag. 243