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Bruno L'Espérance
IAM M.Sc. Student, Department of Mathematics

Stopping Problem in Consumption and Portfolio Optimization

I will present an optimal consumption and portfolio choice model that includes the possibility for the individual to retire earlier than a mandatory retirement date. From a mathematical perspective, this is equivalent to be considering an optimal stopping problem. This presentation follows a paper Saving and Investing for Early Retirement: A Theoretical Analysis by Emmanuel Farhi and Stavros Panageas (Journal of Financial Economics, 2007).

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