PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 26

We begin by guessing values of b* and b** in (IV. 21),
which I shall here denote by b*, and b**,. We then form a
vector, y, say, of type nx I, where n denotes the number of
groups of expenditure; thus

(IV. 36) Yo = Pa € — (b* + 96°) v,

We also form a matrix, Y» say, of order n, where

(IV. 37) Ya = [1— (63 + 958) #1 pe

Apart from a random element, y, and Y, are connected by
the relationship

(IV. 38)

Yo = [Yq : OY]

I c*

; p**

If, denoting successive time-periods by 1, 2, ..., t, we now
define

(IV. 39)

VE} 15 Vas oer Vil

111d

(IV. 40

VV.

1Y,, Y,, ..., Y,!

we can write, apart from a random element

(IV. 41)

Xo

1] Stone - pag. 62