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I need help solving for the planner's problem. Consider an Overlapping generations economy in which N15 young individuals are born each period. Individuals are endowed

I need help solving for the planner's problem.

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Consider an Overlapping generations economy in which N15 young individuals are born each period. Individuals are endowed with y = 15 units of the consumption good when young and nothing when old. The utility function of one typical agent is a typical time-separable 10 cr CRRA: u(cl,02) = c1 +5 170' l 6127 . )6 6 (0,1] is the time discount factor and a > 0 is the 0' inverse of the elasticity of intertemporal substitution. Population of the future generations are determined by N+1 = RN: for all t 2 1. 1. What is the equation for the feasible set of this economy? 2. Portray the feasible set on a graph. 3. Let's solve the Planner's Problem. (i) State the Planner's problem as a constrained maximization problem. (ii) Write down the Lagrangean for this problem. (iii) What are the F005? (iv) Assuming a stationary equilibrium, nd the optimal allocations as a function of 3 and a only. 4. How does consumption when young respond to changes in 6? What about 0? And 11.? 5. Now, )3 = 0.5 and cr = 2. Substitute and nd c1 and (:2

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