申論題

3. Consider the following Irving Fisher’s two periods consumption model with the model
structures:


where c₁ and c₂ represent the consumption of period 1 and period 2, respectively. Besides, β is
the time preference discount factor； R is the interest rate； f₁ is financial wealth in period 1, and
y₁ and y₂ represent the human wealth of period 1 and period 2.