Portfolio Value Management
Portfolio value management deals with the problem of how to determine a portfolio such that the associated portfolio value moves in some desired direction. Two models of portfolio management are presented. The first (second) model considers the case where the portfolio value moves exactly (at least) according to given growth rates. A solution of both models is found by using a fixed-point argument.
Portfolio selection under the condition of value preservation
Besides risk and return, investors often are interested in choosing a portfolio such that the portfolio value is preserved. However, the traditional utility-maximizing approach generally fails to provide such a solution. As a different approach value preservation is formulated as an equilibrium problem. Following this approach it is shown that under reasonable assumptions a value preserving solution exists. The solution only depends on the set of feasable portfolio decisions. Contrary to this, the Bernoulli principle in addition requires a utility function that is independent from this set.
Just Intergenerational Resource Sharing: An Axiomatic Approach
In contrast to customary approaches to the theoretical economic problem of intergenerational resource distribution, we employ an axiomatic approach based on two principles: efficiency and sustainability. These are operationalized and then decisions which satisfy them are characterized in the presence of a standard technology. Upon interpreting some basic implications, the chosen approach turns out to be a kind of fusion of utilitarian principles and a particular distributional restriction. The proof of the existence of a resource-sustaining solution for a generalized model reveals some interesting relationships between our approach and general equilibrium theory.