Consider the standard overlapping generations model, where people have preferences
de
ned over (c1; c2) and are endowed with earnings (y1; y2) = (y; 0). There are no
financial markets so that individuals cannot issue money or debt (i.e., c1 <y1). Let
R denote the (gross) real return on money holdings; i.e., R = pt/pt+1, where pt is the
price-level at date t. For each of the utility function below, set up the optimization
problem
first, and then derive the money demand function and explain its properties.
(1). U = ln C1 + βln C2.
怎么解呢?谢谢。特别是那个解释它的特性该怎么说呢。