By solving the maximization problem, characterize the saving function depending on the value of π, i.e., there are three cases.
Macroeconomics Tomohiro Hirano In submission, you need to type all equations, and submit your answers as a PDF file. Notations are the same as the lecture notes. Problem 1 We consider a CES production function. ππ‘ = π΄ (πΌπΎπ‘ πβ1 π + (1 β πΌ)πΏπ‘ πβ1 π ) π πβ1 . Q1: As π β […]