Pleas show your derivation and background work

Orgunal
timer Asked: Oct 22nd, 2018

Question Description

Please use the attached document to see my project. suppose your lifetime utility function that you are trying to optimize is as given in the document. Please explicitly state the control variable, the state variable and the Bellman equation. Guess the value function and solve for the policy functions.

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Show your derivation and background work to get full credit. 1. Suppose your lifetime utility function that you are trying to optimize is: max Xt=o B'In(Ct). Your transition equation is kt+1 = Sko - Ct. In the above setup, kt is Cc capital, ct is consumption. The parameters 0
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