Casella, Alessandra (contributor) - 2002 - [Elektronische Ressource]
flow of utility over the whole time horizon.
Given a common discount factor *, the problem amounts to maximizing EU
i … given by:
(1) ()
Eu v p p p EV p EV
i
T
ii
T
jj j
i
T
j
i
T−
−
== + + +
1
1
01 0 1
034 2 2 21 …:
(2)()
Eu v p p p EV p EV
i
T
ii
T
jjj
i
T
j
i
T−
−
== + + +
1
1
010 1
134 121() ( /) (,) (,)σδ
taking into account that …