(b) Derive expressions for d (C(s)/C(t)) and d [U' (C(s)) /U' (C(t))] under the as- sumption that lifetime utility is held constant (so that the derivatives are eval- uated along a given indifference curve)

Economics Feb 14, 2022

(b) Derive expressions for d (C(s)/C(t)) and d [U' (C(s)) /U' (C(t))] under the as- sumption that lifetime utility is held constant (so that the derivatives are eval- uated along a given indifference curve). (c) Prove that in the limit, as C(s) + C(t), the expression for o (-) converges to: U' (C(t)) 0 (C(t)) (Q13.28) C(t)U" (C(t))