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 determina-
tion 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