Two-Period Endowment Economy

\(we\): test \(c\): test \(c'\): test \(s\): test \(U\): test
Exogenous Variables and Parameters:
\(y\):   \(y'\):   \(t\):   \(t'\):   \(\beta\):   \(r\):  

Solving the problem algebraically:

The consumer's problem is \[\max_{c,c',s}\log c + \beta \log c'\] \[s.t. c\geq 0;c'\geq 0\] \[c+s\leq y-t\] \[c'\leq (1+r)s+y'-t'\]