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SOLVED: Kroblan max u = log(c1) + log(c2) C1.Cz bubject to C1 +s =W Cz = (1 +r)s (budget constraint in period 1) (budget constraint in period 2). whero u is the
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SOLVED: Consider the two-period consumption-labor model: Suppose that lifetime utility of the representative household is given by: V(C1,l1,C2,12) = u(c1, Y1l1) + Bu(c2, 2lz) where 8 > 0 is the discount factor