Unformatted text preview: ± 1 1 + a ² t ( x − x ∗ ) or x t = b a + (1 + a ) − t ± x − b a ² Substituting back x t = 1 / y t for all t 1 y t = b a + (1 + a ) − t ± 1 y − b a ² Hence, y t = 1 ± b a ² + (1 + a ) − t ± 1 y − b a ² or y t = ay by + (1 + a ) − t ( a − by ) (3.22)...
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 Fall '11
 Dr.Gwartney
 Economics, Xt, Yt

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