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  3. problem 3. in the ue we found the euler equation i

Problem 3. In the UE we found the Euler equation in continuous time to be,...

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Accounting

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Problem 3. In the UE we found the Euler equation in continuous time to be, u[c(t)]u[c(t)]c(t)c(t)c(t)=r(t) where u(Ct) is a general utility function. Now assume a CRRA utility function with 1.1 a) Substitute the general formulation of the utility function with the specific one given above. b) Find an expression for c(t)2. Problem 3. In the UE we found the Euler equation in continuous time to be, u[c(t)]u[c(t)]c(t)c(t)c(t)=r(t) where u(Ct) is a general utility function. Now assume a CRRA utility function with 1.1 a) Substitute the general formulation of the utility function with the specific one given above. b) Find an expression for c(t)2

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