A dynamic programming approach to a consumption/investment and retirement choice problem under borrowing constraints
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초록

In this paper we consider an optimization problem of an infinitely lived working agent with an option to retire who maximizes the utility from her lifetime consumption. The agent receives labor income during the period before her voluntary retirement, but suffers disutility from labor. Moreover, the agent lacks the means to borrow against her future labor income. We use the dynamic programming approach to derive the closed-form solutions and provide some numerical illustrations.

키워드

Borrowing constraintsDynamic programming methodLeisurePortfolio selectionLabor income and disutilityPORTFOLIO SELECTIONUTILITYINVESTMENTDISUTILITYMODEL
제목
A dynamic programming approach to a consumption/investment and retirement choice problem under borrowing constraints
저자
Lee, Ho-SeokKoo, Byung LimShin, Yong Hyun
DOI
10.1007/s13160-017-0264-x
발행일
2017-11
유형
Article
저널명
Japan Journal of Industrial and Applied Mathematics
34
3
페이지
793 ~ 809