✦ LIBER ✦

Optimal consumption of a divisible durable good

✍ Scribed by Domenico Cuoco; Hong Liu

Publisher: Elsevier Science
Year: 2000
Tongue: English
Weight: 434 KB
Volume: 24
Category: Article
ISSN: 0165-1889
DOI: 10.1016/s0165-1889(99)00003-2

No coin nor oath required. For personal study only.

✦ Synopsis

We examine the intertemporal optimal consumption and investment problem in a continuous-time economy with a divisible durable good. Consumption services are assumed to be proportional to the stock of the good held and adjustment of the stock is costly, in that it involves the payment of a proportional transaction cost. For the case in which the investor has an isoelastic utility function and asset prices follow a geometric Brownian motion, we establish the existence of an optimal policy and provide an explicit representation for the value function. We show that the investor acts so as to maintain the ratio of the stock of the durable to total wealth in a "xed (nonstochastic) range and that the optimal investment policy involves stochastic portfolio weights. The dependence of the optimal policies on the parameters of the model is also discussed.

📜 SIMILAR VOLUMES

Optimal consumption and investment strat

Optimal consumption and investment strategies with a perishable and an indivisible durable consumption good

✍ Anders Damgaard; Brian Fuglsbjerg; Claus Munk 📂 Article 📅 2003 🏛 Elsevier Science 🌐 English ⚖ 578 KB

We study the consumption and investment choice of an agent in a continuous-time economy with a riskless asset, several risky ÿnancial assets, and two consumption goods, namely a perishable and a durable good with an uncertain price evolution. Assuming lognormal prices and a multiplicatively separabl

Infinite-horizon optimal advertising in

Infinite-horizon optimal advertising in a market for durable goods

✍ Thomas A. Weber 📂 Article 📅 2005 🏛 John Wiley and Sons 🌐 English ⚖ 288 KB

Optimization of a crankshaft rolling pro

Optimization of a crankshaft rolling process for durability

✍ Simon Ho; Yung-Li Lee; Hong-Tae Kang; Cheng J. Wang 📂 Article 📅 2009 🏛 Elsevier Science 🌐 English ⚖ 1021 KB

A crankshaft is often designed with a small fillet radius. The crankshaft fillet rolling process is one of the commonly adopted methods in engineering to improve fatigue life of the crankshaft. Compressive residual stresses on and below the fillet radius surface are induced through the fillet rollin

Optimising durability of PTFE seals — mi

Optimising durability of PTFE seals — mix and geometry — a good match

✍ Tony Snowdon 📂 Article 📅 2000 🏛 Elsevier Science 🌐 English ⚖ 967 KB

Optimising durability of PTFE seals -mix and geometrya good match by Tony Snowdon, technical director, FTL

Optimal quantity of a controversial good

Optimal quantity of a controversial good or service

✍ Robert E. Kohn 📂 Article 📅 1986 🏛 Springer US 🌐 English ⚖ 278 KB

Durability of a cardiac valve leaflet ma

Durability of a cardiac valve leaflet made of calf pericardium: Fatigue and energy consumption

✍ J.M. García Páez; A. Carrera Sanmartín; E. Jorge Herrero; I. Millán; A. Cordon; 📂 Article 📅 2006 🏛 John Wiley and Sons 🌐 English ⚖ 282 KB

## Abstract We studied the mechanical behavior of membranes of calf pericardium, similar to those employed in prosthetic valve leaflets, when subjected to tensile fatigue. The objective was to assess its durability, as a fundamental property of cardiac bioprosthesis, and analyze the energy consumpt