In the solution to Problem 93.2.3 by Paolo Paruolo, γ*≡ (β, ,Ik)′ should bereplaced by γ* ≡(βí,I*)′ throughout thetext; the same change should be made for*; γ shouldbe replaced by γ* in the second line and two linesbefore the references; “left-hand side” should be“right-hand side” in the second line after (4);“column” should be replaced by “row” in the lastline before the references. Finally, reference \1]is Preprint 1992.2, Institute of MathematicalStatistics, University of Copenhagen; submitted toEconometric Theory.