International Journal of Science and Research (IJSR)

International Journal of Science and Research (IJSR)
Call for Papers | Fully Refereed | Open Access | Double Blind Peer Reviewed

ISSN: 2319-7064


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Research Paper | Mathematics | China | Volume 6 Issue 5, May 2017 | Popularity: 6.1 / 10


     

The Optimal Dividend Problem in the Compound Poisson Model with Covering the Deficit at Ruin

Yanan Wang, Xitong Song


Abstract: In this paper, we consider the optimal dividend problem in the compound Poisson model with covering the deficit at ruin, which is restrained to strategies with restricted densities. As we all known, the shareholders should repay the deficit at ruin. Therefore, we want to maximize the expectation of the difference between the accumulated discounted dividends until ruin and the discounted deficit at ruin, and find out the optimal dividend strategy. Further, when the claim amount distribution is exponential, we obtain explicit solutions of the value function.


Keywords: The Value Function, HJB equation, Optimal Barrier Strategy


Edition: Volume 6 Issue 5, May 2017


Pages: 1660 - 1666



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Yanan Wang, Xitong Song, "The Optimal Dividend Problem in the Compound Poisson Model with Covering the Deficit at Ruin", International Journal of Science and Research (IJSR), Volume 6 Issue 5, May 2017, pp. 1660-1666, https://www.ijsr.net/getabstract.php?paperid=ART20173411, DOI: https://www.doi.org/10.21275/ART20173411



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