Studies from Kwangwoon University in the Area of Industrial Mathematics Reported (Household Utility Maximization With Life Insurance: a Ces Utility Case)

2020 AUG 27 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Investigators discuss new findings in Mathematics - Industrial Mathematics. According to news reporting out of Seoul, South Korea, by NewsRx editors, research stated, “We investigate the optimal consumption, portfolio, and life insurance decisions problem of a liquidity constrained household whose preference is given by the CES (constant elasticity of substitution) utility function.”

Funders for this research include National Research Foundation of Korea Grant - Korean Government, National Research Foundation of Korea - Korean Government, Research Grant of Kwangwoon University in 2020.

Our news journalists obtained a quote from the research from Kwangwoon University, “By applying the martingale and duality method, we obtain the closed-form solution for the household’s value function and optimal strategies. We provide a rigorous proof for the optimality of the strategies.”

According to the news editors, the research concluded: “We exhibit comparative static results of the optimal decisions with respect to the elasticity of substitution between consumption and leisure.”

For more information on this research see: Household Utility Maximization With Life Insurance: a Ces Utility Case. Japan Journal of Industrial and Applied Mathematics, 2020;():. Japan Journal of Industrial and Applied Mathematics can be contacted at: Springer Japan Kk, Shiroyama Trust Tower 5F, 4-3-1 Toranomon, Minato-Ku, Tokyo, 105-6005, Japan. (Springer - www.springer.com; Japan Journal of Industrial and Applied Mathematics - http://www.springerlink.com/content/0916-7005/)

Our news journalists report that additional information may be obtained by contacting Ho-Seok Lee, Kwangwoon University, Dept. of Mathematics, Seoul, South Korea.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1007/s13160-020-00437-9. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

(Our reports deliver fact-based news of research and discoveries from around the world.)