2. Consider the Fully Funded Social Security model from Homework 3.

• Assume government mandated savings of quantity b from the young each period

• This savings accrues to the same individual when they are older, =(1+) tss=(1+r)b
  • The program is "fully funded" in the sense that promised retirement payments are always backed by sufficient savings, b.

The resulting young problem is:

max , +1 , + +1 ( )+( +1 )..(1+)+ maxct,ct+1,slog(ct)+log(ct+1)s.t.ct+sybct+1s(1+r)+tss

(a) Define an equilibrium

(b) Write a code to solve the model

Please answer question use python code