233017 (E10) Consumer capital market constraints and guaranteed renewable insurance: Frick K.,Journal of Risk and Uncertainty, Volume 16, No 3, July/August 1998

• Book ID: 104300162
• Publisher: Elsevier Science
• Year: 1998
• Tongue: English
• Weight: 90 KB
• Volume: 23
• Category: Article
• ISSN: 0167-6687
• DOI: 10.1016/s0167-6687(98)90037-3

✦ Synopsis

The expectation of the discounted dividend payments is determined in the framework of a mathematical model in which financial risk is considered. In particular, starting from a diffusive stochastic model for the cash-balance, the expression of the expectation of the discounted dividends is obtained as the solution of a differential equation, with appropriate boundary conditions relating to the presence of a barrier regulating dividend payments.