Abstract
The article presents a concept of two-person household model with an original approach to expressing life-length risk aversion, allowing, at the same time, to simplify financial plan optimization. The technique uses (with improvements and corrections) concepts introduced in some earlier works by the authors, but it has not been presented so far as the main subject nor discussed in details. Moreover, financial plans for two persons treated as a household are compared here with a sum of two single individuals. This enriches the presentation of the model by an analysis of advantages of the joint (household) approach.
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Acknowledgements
The research project was financed by The National Science Centre (NCN) grant, on the basis of the decision no. DEC-2012/05/B/HS4/04081.
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Pietrzyk, R., Rokita, P. (2016). Facilitating Household Financial Plan Optimization by Adjusting Time Range of Analysis to Life-Length Risk Aversion. In: Wilhelm, A., Kestler, H. (eds) Analysis of Large and Complex Data. Studies in Classification, Data Analysis, and Knowledge Organization. Springer, Cham. https://doi.org/10.1007/978-3-319-25226-1_31
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DOI: https://doi.org/10.1007/978-3-319-25226-1_31
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