Optimal consumption under loss-averse multiplicative habit-formation preferences
By Bahman Angoshtari, Xiang Yu, Fengyi Yuan
Rating
1414
Battle Count: 117
Relevance
8/10
Highly relevant for modeling investor behavior with habit formation and loss aversion, which can impact portfolio construction and risk management strategies.
Implementation Complexity
7/10
Requires advanced mathematical knowledge and numerical methods to implement the proposed solutions.
Reproducibility
4/5
The paper provides detailed mathematical proofs and numerical algorithms, enhancing reproducibility.
About this paper
Methodology: Stochastic Control Theory. Problem types: Portfolio Optimization, Risk Management.
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