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:

  1. The u and v sequences are standard normal variables. You have to rescale them appropriately.
  2. There is no problem 3 (b). Keep the numbering. 
  3. In problem 3, please change the matrix A by replacing the upper-right «4.5» entry by «2.5».
  4. Also, it is the stationary variance that should be 3, not the stationary state. The stationary distribution is 2-dimensional and the marginal stationary distribution is the marginal of this simultaneous distribution.
  5. 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».