Optimal consumption and portfolio choice with ambiguous interest rates and volatility

B-Tier
Journal: Economic Theory
Year: 2021
Volume: 71
Issue: 3
Pages: 1189-1202

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Abstract We study continuous-time consumption and portfolio choice in the presence of Knightian uncertainty about interest rates. We develop the stochastic model that involves singular priors and analyze optimal behavior. When there is sufficiently large uncertainty about interest rates, the agent invests in the asset market only and abstains from the bond market.

Technical Details

RePEc Handle
repec:spr:joecth:v:71:y:2021:i:3:d:10.1007_s00199-020-01306-9
Journal Field
Theory
Author Count
2
Added to Database
2026-01-29