Optimality of refraction strategies for a constrained dividend problem

Fuente: arXiv
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Main Authors: Junca, Mauricio, Moreno-Franco, Harold, Pérez, José-Luis, Yamazaki, Kazutoshi
Format: Preprint
Published: 2018
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_version_ 1866909989027708928
author Junca, Mauricio
Moreno-Franco, Harold
Pérez, José-Luis
Yamazaki, Kazutoshi
author_facet Junca, Mauricio
Moreno-Franco, Harold
Pérez, José-Luis
Yamazaki, Kazutoshi
contents We consider de Finetti's problem for spectrally one-sided Lévy risk models with control strategies that are absolutely continuous with respect to the Lebesgue measure. Furthermore, we consider the version with a constraint on the time of ruin. To characterize the solution to the aforementioned models, we first solve the optimal dividend problem with a terminal value at ruin and show the optimality of threshold strategies. Next, we introduce the dual Lagrangian problem and show that the complementary slackness conditions are satisfied, characterizing the optimal Lagrange multiplier. Finally, we illustrate our findings with a series of numerical examples.
format Preprint
id arxiv_https___arxiv_org_abs_1803_08492
institution arXiv
publishDate 2018
record_format arxiv
spellingShingle Optimality of refraction strategies for a constrained dividend problem
Junca, Mauricio
Moreno-Franco, Harold
Pérez, José-Luis
Yamazaki, Kazutoshi
Optimization and Control
60G51, 93E20, 91B30
We consider de Finetti's problem for spectrally one-sided Lévy risk models with control strategies that are absolutely continuous with respect to the Lebesgue measure. Furthermore, we consider the version with a constraint on the time of ruin. To characterize the solution to the aforementioned models, we first solve the optimal dividend problem with a terminal value at ruin and show the optimality of threshold strategies. Next, we introduce the dual Lagrangian problem and show that the complementary slackness conditions are satisfied, characterizing the optimal Lagrange multiplier. Finally, we illustrate our findings with a series of numerical examples.
title Optimality of refraction strategies for a constrained dividend problem
topic Optimization and Control
60G51, 93E20, 91B30
url https://arxiv.org/abs/1803.08492