Optimal consumption and portfolio selection with lower and upper bounds on consumption
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초록

We investigate the optimal consumption and investment problem with lower and upper bounds on consumption constraints. We derive closed-form solutions by means of the dynamic programming approach. We also evaluate the effects of the optimal consumption and portfolio on consumption constraints and present some numerical/economic implications. In particular, we see that the upper bound on consumption acts as a bliss level in a quadratic utility model.

키워드

Consumption constraintsConsumptionInvestment problemCRRA utilityDynamic programming approachINVESTMENT PROBLEMQUADRATIC UTILITYTIMECONSTRAINTSMODEL
제목
Optimal consumption and portfolio selection with lower and upper bounds on consumption
저자
Roh, Kum-HwanShin, Yong Hyun
DOI
10.1186/s13662-020-02809-4
발행일
2020-07
유형
Article
저널명
Advances in Difference Equations
2020
1
페이지
1 ~ 11