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Question about bellman equation

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Reference no: EM131542261

This is a question about Bellman equation

a) F(Nt) = Mt * Nt1/2 ( Technology)

Σ∞t=0 * Bt U(Ct ) ( preferences)

Mt+1 = Mt - α Nt ( law of motion)

using Bellman equation, state planner's problem at t

b) Do the same in terms of Ht +1 so the choice variable is Ht+1 and explain how to find steady state of M*

Reference no: EM131542261

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