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This paper examines the retirement decision, optimal investment, and consumption strategies under an age … problem with interconnected dynamics. We establish the existence of an optimal retirement boundary that splits the state space … the optimal strategies, including the sensitivities of the optimal retirement boundary concerning the relevant model …
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We examine whether organizational form matters for a firm's cost of capital. Contrary to conventional view, we argue that coinsurance among a firm's business units can reduce systematic risk through the avoidance of countercyclical deadweight costs. We find that diversified firms have on average...
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