The amount of wealth allocated to a particular risky asset depends on the riskiness of the asset. When an insurance policy against losses from holding the asset is made available, then this allocation can also depend on the form and the price of the insurance. The purpose of this research is to...

This paper analyzes the optimal allocation problem of a small country facing an uncertain technology and trading. It is involved in production of many commodities. Differentiability cannot be guaranteed, hence, the Ramsey-Euler condition of optimality needs to be modified. From the optimality...