Blake, David; Wright, Douglas; Zhang, Yumeng - In: Journal of Economic Dynamics and Control 37 (2013) 1, pp. 195-209
Assuming the loss aversion framework of Tversky and Kahneman (1992), stochastic investment and labour income processes, and a path-dependent fund target, we show that the optimal investment strategy for defined contribution pension plan members is a target-driven ‘threshold’ strategy,...
