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Sep 2026

Optimal Consumption, Life Insurance and Investment Strategies with Heterogeneous Discounting and Habit Formation under the HLSV Model

The Heston local-stochastic volatility (HLSV) model is used to investigate optimal consumption, life insurance, and investment strategies for a decision maker with habit formation and heterogeneous discounting. The decision maker can allocate wealth in a financial market consisting of risk-free and risky assets, where...

Qi Liu, Qing Zhou · 0 citations

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