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KCI등재
학술저널
CONSUMPTION AND INVESTMENT STRATEGIES WITH HYPERBOLIC DISCOUNTING AND LABOR INCOME
- 충청수학회
- Journal of the Chungcheong Mathematical Society
- Volume 32, No. 2
- : KCI등재
- 2019.05
- 215 - 224 (10 pages)
We investigate the optimal consumption and investment decision problem of an agent whose time preference is time-inconsistent. Specicfically, for a time-separable utility function, the agent s subjective discount factor is supposed to be changed randomly in the future. We provide closed-form solutions in the presence of income process. The method can be extended into the case with a stochastic income process.
Abstract
1. Introduction
2. The Model
3. The Solution: Constant Income
4. Stochastic Income
5. Conclusion
References