difference in stochastic costs of location across regions. A comparative static analysis shows that capital allocation depends … to the expected utility approach. The impact of changes in distribution parameters, such as the expected costs of … location, the variance of costs of location and the correlation between locational costs, can be fully characterized via the …

and inflation risk. Both sources of uncertainty make it difficult to stabilize consumption over time. However, investors …. Optimal consumption and risk management strategies are derived. It is shown that dynamic hedging increases an investor …'s welfare in terms of the expected inter-temporal utility of consumption. …

difference in stochastic costs of location across regions. A comparative static analysis shows that capital allocation depends … to the expected utility approach. The impact of changes in distribution parameters, such as the expected costs of … location, the variance of costs of location and the correlation between locational costs, can be fully characterized via the …

and inflation risk. Both sources of uncertainty make it difficult to stabilize consumption over time. However, investors …. Optimal consumption and risk management strategies are derived. It is shown that dynamic hedging increases an investor …'s welfare in terms of the expected inter-temporal utility of consumption. …