Non-constant discounting and consumption, portfolio and life insurance rules

Jesus Marin-Solano, Jorge Navas and Oriol Roch

Economics Letters, 2013, vol. 119, issue 2, 186-190

Abstract: Consumption, portfolio and life insurance rules are studied for an investor with an arbitrary but known distribution of lifetime with time-inconsistent preferences. Solutions are found for naive and sophisticated agents for the family of CARA and CRRA utility functions. Effects of non-constant discounting are illustrated numerically.

Keywords: Consumption; Portfolio and life insurance rules; Hyperbolic preferences; Non-constant discounting; Naive and sophisticated agents (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:119:y:2013:i:2:p:186-190

DOI: 10.1016/j.econlet.2013.02.023

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