Assuming that

$C_t^{*}=+{}_0{I}_t+u_t,$

where $C_t^{*}$ is permanent per capita personal expenditure

$$5\mathrm{.}2\mathrm{.}1.$ Derive the partial adjustment model. Hint: use the partial adjustment hypothesis:

$C_t-C_{t-1}=(C_t^{*}-C_{t-1})$

$4\mathrm{.}2\mathrm{.}2.$ Compute the coefficient pf partial adjustment

$[4]$

$[2]$

$[4]$