Unemployment Risks and Optimal Retirement in an Incomplete Market
(2016)
Journal Article
Park, S., Bensoussan, A., & Jang, B.-G. (2016). Unemployment Risks and Optimal Retirement in an Incomplete Market. Operations Research, 64(4), 1015-1032. https://doi.org/10.1287/opre.2016.1503
We develop a new approach for solving the optimal retirement problem for an individual with an unhedgeable income risk. The income risk stems from a forced unemployment event, which occurs as an exponentially-distributed random shock. The optimal ret... Read More about Unemployment Risks and Optimal Retirement in an Incomplete Market.