1.
J Inequal Appl
; 2017(1): 188, 2017.
Article
in English
| MEDLINE
| ID: mdl-28860689
ABSTRACT
In this paper, we investigate the optimal consumption and portfolio selection problem with negative wealth constraints for an economic agent who has a quadratic utility function of consumption and receives a constant labor income. Due to the property of the quadratic utility function, we separate our problem into two cases and derive the closed-form solutions for each case. We also illustrate some numerical implications of the optimal consumption and portfolio.