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  • Search: subject:"optimal consumption and portfolio policies"
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Markov chain approximation 1 borrowing constraints 1 optimal consumption and portfolio policies 1 undiversifiable income risk 1 wealth equivalent of income 1
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Munk, Claus 1
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Optimal Consumption/Investment Policies with Undiversifiable Income Risk and Borrowing Constraints
Munk, Claus - EconWPA - 1997
We examine the optimal consumption and portfolio choice of an investor having an initial wealth endowment and an uncertain stream of income from non-traded assets. The income stream is not spanned by traded assets, and the investor is not allowed to borrow against future income, so the financial...
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