{"title":"Analytic approach for models of optimal retirement with disability risk","authors":"Jiwon Chae , Bong-Gyu Jang , Seyoung Park","doi":"10.1016/j.mathsocsci.2023.09.007","DOIUrl":null,"url":null,"abstract":"<div><p>Models of optimal retirement should reflect market incompleteness in reality caused by disability risk. In this paper, we develop an analytic approach for optimal retirement models with disability risk. More precisely, we provide an analytically tractable characterization of total wealth that is the sum of financial wealth and the present value of future income. We then provide analytic properties of the retirement wealth threshold. Finally, we derive the analytical optimal consumption and portfolio choice with retirement and disability risk.</p></div>","PeriodicalId":51118,"journal":{"name":"Mathematical Social Sciences","volume":"126 ","pages":"Pages 68-75"},"PeriodicalIF":0.5000,"publicationDate":"2023-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Mathematical Social Sciences","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0165489623000823","RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
Models of optimal retirement should reflect market incompleteness in reality caused by disability risk. In this paper, we develop an analytic approach for optimal retirement models with disability risk. More precisely, we provide an analytically tractable characterization of total wealth that is the sum of financial wealth and the present value of future income. We then provide analytic properties of the retirement wealth threshold. Finally, we derive the analytical optimal consumption and portfolio choice with retirement and disability risk.
期刊介绍：
The international, interdisciplinary journal Mathematical Social Sciences publishes original research articles, survey papers, short notes and book reviews. The journal emphasizes the unity of mathematical modelling in economics, psychology, political sciences, sociology and other social sciences.
Topics of particular interest include the fundamental aspects of choice, information, and preferences (decision science) and of interaction (game theory and economic theory), the measurement of utility, welfare and inequality, the formal theories of justice and implementation, voting rules, cooperative games, fair division, cost allocation, bargaining, matching, social networks, and evolutionary and other dynamics models.
Papers published by the journal are mathematically rigorous but no bounds, from above or from below, limits their technical level. All mathematical techniques may be used. The articles should be self-contained and readable by social scientists trained in mathematics.
京公网安备 11010802042870号
京ICP备2023020795号-1
分享
求助内容：
应助结果提醒方式：
扫码关注我们
