Portfolio selection and job switching with CARA utility
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초록

We investigate an optimal consumption and portfolio selection problem with a job switching option. The agent with CARA utility can choose between two types of jobs: one with high labor income but high disutility from labor, and the other with low labor income and low disutility from labor. We use the dual/martingale approach to obtain closed-form solutions to the agent's lifetime utility optimization problem. We also obtain some numerical implications. © 2023 Elsevier B.V.

키워드

CARA utilityConsumptionDual/martingale approachJob switchingPortfolio selectionOPTIMAL CONSUMPTIONRETIREMENTCHOICEFLEXIBILITYINVESTMENT
제목
Portfolio selection and job switching with CARA utility
저자
Shin, Yong HyunLee, Ho-Seok
DOI
10.1016/j.cam.2023.115120
발행일
2023-08
유형
Article
저널명
Journal of Computational and Applied Mathematics
427