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To solve the Life Cycle Consumption with Assets and Labor Supply Problem:
- Enter a planning horizon (max=15), a discount factor, and an interest rate.
- Enter a minimum asset level. A minimum asset level of 0 means that no borrowing is allowed; a minimum asset level less than 0 means that borrowing is allowed.
- The default utility function and wage function are displayed.
- Click "Submit" to solve the problem using the NEOS Server.
- Wait for the results to show up in the solution section at the bottom. The solution section will display the
objective value and the optimal amount to consume in each period along with the corresponding labor supply and asset value.
Back to Life Cycle Consumption with Assets and Labor Supply case study.