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We assume that the insurance company hopes for more terminal capital with less risks and more consumption (c_{i}(cdot)).
In fact, in real situations, sometimes the investor will set a goal (constraint) for the terminal capital (X(T)) in the investment.
However, the rationality of the shape has been questioned as there is no constraint for the terminal capital (X(T)) on the basis of the hypothesis.
Hence we believe that in a concordant model of the production and consumption some constraints for the terminal capital (X(T)) should be considered, i.e., (X(T in Q), where (Qinmathbb{R}^{n}).
Similar(56)
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com