• DocumentCode
    3085920
  • Title

    Optimal consumption by a bond investor: the case of random interest rate adapted to a point process

  • Author

    Lakner, P. ; Slud, Eric

  • Author_Institution
    Stern Sch. of Bus., New York Univ., NY, USA
  • fYear
    1990
  • fDate
    5-7 Dec 1990
  • Firstpage
    2333
  • Abstract
    The authors present a summary of previous work (P. Lakner and E. Slud, SIAM J. Control Optimization, forthcoming). Considered is a problem of optimal consumption, on a finite continuous time horizon [0. T], by an agent who has initial wealth x>0 and invests the unconsumed wealth in a single bond. The optimal consumption process is characterized in terms of a positive martingale satisfying an almost sure condition. Existence of the characterizing martingale is discussed
  • Keywords
    integral equations; investment; random processes; almost sure condition; bond investor; characterizing martingale; existence; finite continuous time horizon; integral equations; optimal consumption; point process; positive martingale; random interest rate; random processes; unconsumed wealth; Bonding; Boundary conditions; Computer aided software engineering; Economic indicators; Q measurement;
  • fLanguage
    English
  • Publisher
    ieee
  • Conference_Titel
    Decision and Control, 1990., Proceedings of the 29th IEEE Conference on
  • Conference_Location
    Honolulu, HI
  • Type

    conf

  • DOI
    10.1109/CDC.1990.204042
  • Filename
    204042