An Exploration of an Individual’s Decision-Making Regarding Tax-Deferred Investment Plans

Authors

  • M. Hadi Behzad California State University, Hayward
  • Patrick S. Lee La Salle University
  • Gautam Vora University of New Mexico

DOI:

https://doi.org/10.1016/1057-0810(91)90036-X

Abstract

Several decision making models are presented in this article for allocating an individual’s savings in tax-deferred opportunities. Because the models are general, they can examine any number of tax-deferred opportunities. The resource allocation problem is formulated as a linear program. Historical or forecast values of costs and returns are used as exogenous parameters of the linear program. The model is simulated under different scenarios to demonstrate that the linear programming approach can be fruitful, simple, and insightful in bridging the gap between theoret- ical findings and actual investment in various tax-deferred opportunities. The _/our- naZofRiskandZnsurance, Vol. LVIII, No. 2 (June 1991), pp. 205-226. (Reprinted with permission of The Journal of Risk and Insurance.)

Published

1991-12-30

How to Cite

Behzad, M. H., Lee, P. S., & Vora , G. (1991). An Exploration of an Individual’s Decision-Making Regarding Tax-Deferred Investment Plans. Financial Services Review, 1(2), 179. https://doi.org/10.1016/1057-0810(91)90036-X

Issue

Vol. 1 No. 2 (1991): Financial Services Review

Section

Abstracts of Articles on Individual Financial Management

License

Copyright (c) 1991 JAI Press Inc.

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