Journal of the Chungcheong Mathematical Society (충청수학회지)

The Chungcheong Mathematical Society (충청수학회)
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THE EFFECTS OF TAXATION ON OPTIMAL CONSUMPTION AND INVESTMENT

  • Lim, Byung Hwa (Department of Economics and Finance The University of Suwon)
  • Received : 2018.01.05
  • Accepted : 2018.01.18
  • Published : 2018.02.15
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Abstract

We investigate the optimal consumption and investment problem of working agent who faces tax system on consumption, labor income, savings and investment. By applying martingale method, we obtain the closed-form solutions so it is possible to verify the effect of tax system analytically.

Keywords

Acknowledgement

Supported by : National Research Foundation of Korea

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