Utility Maximization with a Stochastic Clock and an Unbounded Random Endowment

dc.creatorZitkovic, Gordan
dc.date2005-03-24
dc.date.accessioned2026-07-07T12:11:12Z
dc.date.available2026-07-07T12:11:12Z
dc.descriptionWe introduce a linear space of finitely additive measures to treat the problem of optimal expected utility from consumption under a stochastic clock and an unbounded random endowment process. In this way we establish existence and uniqueness for a large class of utility-maximization problems including the classical ones of terminal wealth or consumption, as well as the problems that depend on a random time horizon or multiple consumption instances. As an example we explicitly treat the problem of maximizing the logarithmic utility of a consumption stream, where the local time of an Ornstein-Uhlenbeck process acts as a stochastic clock.
dc.descriptionPublished at http://dx.doi.org/10.1214/105051604000000738 in the Annals of Applied Probability (http://www.imstat.org/aap/) by the Institute of Mathematical Statistics (http://www.imstat.org)
dc.identifierhttps://arxiv.org/abs/math/0503516
dc.identifierhttp://arxiv.org/abs/math/0503516
dc.identifierAnnals of Applied Probability 2005, Vol. 15, No. 1B, 748-777
dc.identifierdoi:10.1214/105051604000000738
dc.identifier.urihttp://salesiana.dossiersoluciones.com/handle/123456789/210148
dc.subjectProbability
dc.subjectComputational Finance
dc.subject91B28 (Primary) 60G99, 60H99. (Secondary)
dc.titleUtility Maximization with a Stochastic Clock and an Unbounded Random Endowment
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