Optimization of contracts and investment through various continuous-time dynamic principal-agent models

In this thesis, three dynamic principal-agent models and a defined contribution (DC) pension model are investigated. Time-varying volatility, ability uncertainty, and time-varying shocks are considered in the three principal-agent models, respectively, from which we derive the optimal contracts unde...

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Bibliographic Details
Main Author: Lai, Chong
Format: Thesis
Published: Curtin University 2019
Online Access:http://hdl.handle.net/20.500.11937/79915
Description
Summary:In this thesis, three dynamic principal-agent models and a defined contribution (DC) pension model are investigated. Time-varying volatility, ability uncertainty, and time-varying shocks are considered in the three principal-agent models, respectively, from which we derive the optimal contracts under different assumptions. Two types of administrative fees and the return of premium clause are studied in the DC pension scheme. The effects of the two fees on optimal investment are analyzed.