An optimal investment, consumption-leisure and voluntary retirement choice problem with subsistence consumption constraints

  • Ho-Seok Lee
  • Yong Hyun ShinEmail author
Original Paper Area 4


We study an optimal investment, consumption-leisure and voluntary retirement problem for an agent whose consumption rate process is subject to a subsistence constraint before retirement. We use the dynamic programming method to obtain closed-form solutions for the optimal strategies as well as the value function when the agent’s utility of consumption and leisure is of Cobb–Douglas form.


Consumption and leisure Voluntary retirement Subsistence consumption constraint Cobb–Douglas utility Dynamic programming method 

Mathematics Subject Classification

91G10 91G80 



We appreciate two anonymous referees for helpful comments and valuable suggestions to improve our paper.


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Copyright information

© The JJIAM Publishing Committee and Springer Japan 2016

Authors and Affiliations

  1. 1.Department of MathematicsKwangwoon UniversitySeoulRepublic of Korea
  2. 2.Department of MathematicsSookmyung Women’s UniversitySeoulRepublic of Korea

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