C     invert g(.,.,.,.) to calculate x(t,.) 

C     Two capital goods



      xalp = (x(t-1,1)**alpha(3)) * (x(t-1,2)**alpha(4))

      rhs =  alpha(1) * psi(t,1)  

      x(t,3) = rhs**(1/alpha(2))  



      xratio = psi(t,2)/psi(t,1)



      prod = thed(t) * xalp + alpha(5)*x(t-1,1) 

     $                      + alpha(6)*x(t-1,2)



      x(t,1) = (1/(1+xratio))*(prod - x(t,3))  

      x(t,2) = prod - x(t,3) - x(t,1)



      x(t,4) = xratio

      

c      ( x(t,2) - x(t-1,2)*alpha(6) )/

c     %      ( x(t,1) - x(t-1,1)*alpha(5) )

      

      if ( x(t,1).le.0 .or. x(t,2).le.0 ) then

           write(7,*) x(t,1), x(t,2), x(t,3), thed(t)

           write(7,*) 'consumption too large'

           stop

           endif



                            

      xlog(t,1) = log(x(t,1))

      xlog(t,2) = log(x(t,2)) 

      xlog(t,3) = log(x(t,3))

            

C     calculate the phi to be predicted

C     'phi' contains the stuff inside the conditional expectation that

C      we will try to predict in sbeta

 



      if (t.lt.130) goto 10

      

      phi(t-1,1) = rhs * (alpha(3) * thed(t) * xalp / x(t-1,1) + 

     &                         alpha(5))

      phi(t-1,2) = rhs * (alpha(4) * thed(t) * xalp / x(t-1,1) +

     &                     alpha(6) * x(t-1,2)/x(t-1,1))

  10  continue