^{ECON 5160 2011, April 5th}
Annotated errata to the term paper problem set.
Please observe the following corrections The following corrects the term paper problem set:
 The u and v sequences are standard normal variables. You have to rescale them appropriately.
 There is no problem 3 (b). Keep the numbering.
 In problem 3, please change the matrix A by replacing the upperright «4.5» entry by «2.5».

Also, it is the stationary variance that should be 3, not the stationary state. The stationary distribution is 2dimensional and the marginal stationary distribution is the marginal of this simultaneous distribution.

Correction #3 applies to problem 4, as it refers to the matrix A from problem 3. This matrix should also have «2.5» instead of the «4.5».
Comments:
 For corrections 1 and 2 above, we decided to provide you with simulated numbers rather than asking you to draw, but the lastminute changes were a bit too hasty.
 For problem 3, we copied Samuelson's model without realising it would diverge to infinity. The change into 2.5 means it will have a longrun steadystate. Thanks to Zongwei!