An OLG Model for Optimal Investment and Insurance Decisions
用世代交叠模型研究个人在消费、投资、保险和教育支出上的最优决策，首次在考虑代际转移支付下讨论保险需求，发现人力资本投资与风险资产投资及风险厌恶系数无关。
Abstract This article uses overlapping generation (OLG) model to study individuals' optimal decision on consumption, investment, insurance, and education expenses. To the best of our knowledge, we are the first to discuss the individuals' demand for insurance with the consideration of intergenerational transfer payments. In the article, we incorporate insurance into the OLG model to describe individuals' optimization problem on consuming and saving, and we solve the optimal proportions of expenditure on investment, survival insurance, life insurance, and education, with the optimal consumption to be the remaining parts of expenditure. We observe that the numerical outputs are consistent with the actual data. It is also interesting to find that the human capital investment is independent of both risky asset investment and individuals' risk aversion coefficient.