Question: 2.(5 points) Consider the following optimal control problem: rtoo max In(r)e=redt subject to y=y - . Vt > 0 with y(0) = yo > 0

2.(5 points) Consider the following optimal

2.(5 points) Consider the following optimal control problem: rtoo max In(r)e=redt subject to y=y" - . Vt > 0 with y(0) = yo > 0 given. (2.1) Write down the Hamilton-Jacob-Bellman equation, its corresponding first or- der condition and express in term of the Bellman Value function. (2.2) Using maximum principle write down the first order condition. (2.3) From the first order condition obtained in (2.2), obtain the long-run steady state of the dynamic system of (x*,y*)

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