Problem 2 Consider an economy with two agents Bill and Chris

Problem 2: Consider an economy with two agents, Bill and Chris, each of whom lives for two periods: now (t-0) and the future (t-1). Denoting Bill\'s consumption at t-0 and t-1 by respectively x8 and y8, and Chris\' by Xc and yC, Bill\'s utility function is given by u* (x3,y8) - (x*)\'(y)/ and Chris\' by uf (x,y?)-(xc)»(y^)23. Each of the agents receives an endowment of X8 -XC 2 at t-0 and Y8 - YC2 at t-1. Both agents have the possibility of investing in a production technology with marginal return given by () What is Bill\'s optimal level of investment e8 in the production technology, and his optimal consumption levels at t-0 and t-1 as functions of the interest rate r? (Hint: write down the constraint Bill is facing, then form the Lagrangian for the problem and solve) a. b. what is Chris\'s optimal level of investment in the production technology and his optimal consumption levels at t=0 and t-1 as functions of the interest rate r? (Hint: write down the constraint Chris is facing, then form the Lagrangian for the problem and solve)

Solution

Since childhood I often wondered what it would have been like to grow up with a grandmother or an aunt. I was denied both of those experiences because my one grandmother was gassed in the extermination camp Belzec along with her three daughters and the other one in Treblinka along with her 13-year old son. My parents survived the Holocaust.

Though I also lost one grandfather and three paternal uncles, Olivia Gordon\'s review (OT, Trinity 2017) for the first time in my life made me reflect distinctly on these women of my family who were killed and what they must have gone through additionally as mothers.