• DocumentCode
    434959
  • Title

    On the optimal balance between consumption and investment

  • Author

    Fleming, Wendell H. ; Hernández-Hernández, Daniel

  • Author_Institution
    Div. of Appl. Math., Brown Univ., Providence, RI, USA
  • Volume
    4
  • fYear
    2004
  • fDate
    14-17 Dec. 2004
  • Firstpage
    3915
  • Abstract
    In this paper we are concerned with the tradeoff between long term growth of the expected utility of wealth and consumption. The goal is to find a consumption policy for which the optimal rate of capital growth is zero, i.e. a policy for which balance between consumption and investment is reached.
  • Keywords
    investment; optimal control; optimisation; stochastic systems; utility theory; capital growth rate; consumption policy; expected utility; long term growth; optimal balance; optimal rate; Asset management; Differential equations; Economic indicators; Investments; Mathematics; Optimal control; Portfolios; Stochastic processes; Utility theory; Yttrium;
  • fLanguage
    English
  • Publisher
    ieee
  • Conference_Titel
    Decision and Control, 2004. CDC. 43rd IEEE Conference on
  • ISSN
    0191-2216
  • Print_ISBN
    0-7803-8682-5
  • Type

    conf

  • DOI
    10.1109/CDC.2004.1429352
  • Filename
    1429352