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This paper investigates the consumption and risk taking decision of an economic agent with partial irreversibility of consumption decision by formalizing the theory proposed by Duesenberry (1949). The optimal policies exhibit a type of the…

理论经济学 · 经济学 2018-12-27 Kyoung Jin Choi , Junkee Jeon , Hyeng Keun Koo

We study an optimal investment and consumption problem over a finite-time horizon, in which an individual invests in a risk-free asset and a risky asset, and evaluate utility using a general utility function that exhibits loss aversion with…

最优化与控制 · 数学 2025-07-08 Chonghu Guan , Xinfeng Gu , Wenhao Zhang , Xun Li

This paper considers the problem of consumption and investment in a financial market within a continuous time stochastic economy. The investor exhibits a change in the discount rate. The investment opportunities are a stock and a riskless…

投资组合管理 · 定量金融 2013-03-07 Traian Pirvu , Huayue Zhang

We consider a monopoly insurance market with a risk-neutral profit-maximizing insurer and a consumer with Yaari Dual Utility preferences that distort the given continuous loss distribution. The insurer observes the loss distribution but not…

理论经济学 · 经济学 2025-04-03 Mario Ghossoub , Bin Li , Benxuan Shi

The consumption function maps current wealth and the exogenous state to current consumption. We prove the existence and uniqueness of a consumption function when the agent has a preference for wealth. When the period utility functions are…

理论经济学 · 经济学 2025-09-30 Qingyin Ma , Alexis Akira Toda

In this paper, we consider the portfolio optimization problem in a financial market where the underlying stochastic volatility model is driven by n-dimensional Brownian motions. At first, we derive a Hamilton-Jacobi-Bellman equation…

数理金融 · 定量金融 2024-12-20 Minglian Lin , Indranil SenGupta

In this paper we employ a lifecycle model that uses utility of consumption and bequest to determine an optimal Deferred Income Annuity (DIA) purchase policy. We lay out a mathematical framework to formalize the optimization process. The…

投资组合管理 · 定量金融 2021-11-03 F. Habib , H. Huang , A. Mauskopf , B. Nikolic , T. S. Salisbury

We consider a problem of an optimal consumption strategy on the infinite time horizon when the short-rate is a diffusion process. General existence and uniqueness theorem is illustrated by the Vasicek and so-called invariant interval…

最优化与控制 · 数学 2009-10-05 Daniel Synowiec

We consider the economic problem of optimal consumption and investment with power utility. We study the optimal strategy as the relative risk aversion tends to infinity or to one. The convergence of the optimal consumption is obtained for…

投资组合管理 · 定量金融 2012-08-13 Marcel Nutz

We consider an insurance company which faces financial risk in the form of insurance claims and market-dependent surplus fluctuations. The company aims to simultaneously control its terminal wealth (e.g. at the end of an accounting period)…

风险管理 · 定量金融 2025-11-24 Aleksandar Arandjelović , Julia Eisenberg

We investigate models of the life annuity insurance when the company invests its reserve into a risky asset with price following a geometric Brownian motion. Our main result is an exact asymptotic of the ruin probabilities for the case of…

概率论 · 数学 2015-05-19 Yuri Kabanov , Serguei Pergamenshchikov

We study the optimal investment problem for a continuous time incomplete market model such that the risk-free rate, the appreciation rates and the volatility of the stocks are all random; they are assumed to be independent from the driving…

投资组合管理 · 定量金融 2014-04-01 Nikolai Dokuchaev

We assume that an individual invests in a financial market with one riskless and one risky asset, with the latter's price following a diffusion with stochastic volatility. In the current financial market especially, it is important to…

投资组合管理 · 定量金融 2011-05-06 Erhan Bayraktar , Xueying Hu , Virginia R. Young

We consider the problem of designing an expected-revenue maximizing mechanism for allocating multiple non-perishable goods of $k$ varieties to flexible consumers over $T$ time steps. In our model, a random number of goods of each variety…

计算机科学与博弈论 · 计算机科学 2020-07-08 Shiva Navabi , Ashutosh Nayyar

The paper investigates the consumption-investment problem for an investor with Epstein-Zin utility in an incomplete market. A non-Markovian environment with unbounded parameters is considered, which is more realistic in practical financial…

数理金融 · 定量金融 2025-10-27 Zixin Feng , Dejian Tian , Harry Zheng

This paper studies the optimal consumption under the addictive habit formation preference in markets with transaction costs and unbounded random endowments. To model the proportional transaction costs, we adopt the Kabanov's multi-asset…

投资组合管理 · 定量金融 2016-07-26 Xiang Yu

We consider a risk-sensitive optimization of consumption-utility on infinite time horizon where the one-period investment gain depends on an underlying economic state whose evolution over time is assumed to be described by a discrete-time,…

最优化与控制 · 数学 2021-11-19 Anindya Goswami , Nimit Rana , Tak Kuen Siu

In this work we analytically solve an optimal retirement problem, in which the agent optimally allocates the risky investment, consumption and leisure rate to maximise a gain function characterised by a power utility function of consumption…

投资组合管理 · 定量金融 2021-08-23 Guodong Ding , Daniele Marazzina

This paper studies the problem of maximizing the expected utility of terminal wealth for a financial agent with an unbounded random endowment, and with a utility function which supports both positive and negative wealth. We prove the…

投资组合管理 · 定量金融 2008-12-10 Mark Owen , Gordan Zitkovic

In a continuous time stochastic economy, this paper considers the problem of consumption and investment in a financial market in which the representative investor exhibits a change in the discount rate. The investment opportunities are a…

最优化与控制 · 数学 2011-07-12 Traian A. Pirvu , Huayue Zhang