Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
4631383 | Applied Mathematics and Computation | 2012 | 17 Pages |
Abstract
We address an optimal consumption–investment–retirement problem with stochastic labor income. We study the Merton problem assuming that the agent has to take four different decisions: the retirement date which is irreversible; the labor and the consumption rate and the portfolio decision before retirement. After retirement the agent only chooses the portfolio and the consumption rate. We confirm some classical results and we show that labor, portfolio and retirement decisions interact in a complex way depending on the spanning opportunities.
Keywords
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Physical Sciences and Engineering
Mathematics
Applied Mathematics
Authors
Emilio Barucci, Daniele Marazzina,