Dynamic Optimization

Income Disaster, Role of Income Support, and Optimal Retirement ArXiv ID: 2509.12874 “View on arXiv” Authors: Tae Ung Gang, Seyoung Park, Yong Hyun Shin Abstract This paper investigates the interactions among consumption/savings, investment, and retirement choices with income disaster. We consider low-income people who are exposed to income disaster so that they retire involuntarily when income disaster occurs. The government provides extra income support to low-income retirees who suffer from significant income gaps. We demonstrate that the decision to enter retirement in the event of income disaster depends crucially on the level of income support. In particular, we quantitatively identify a certain income support level below which the optimal decision is to delay retirement. This implies that availability of the government’s extra income support can be particularly important for the low-income people to achieve optimal retirement with income disaster. ...

Optimizing Portfolios with Pakistan-Exposed ETFs: Risk and Performance Insight ArXiv ID: 2501.13901 “View on arXiv” Authors: Unknown Abstract This study examines the investment landscape of Pakistan as an emerging and frontier market, focusing on implications for international investors, particularly those in the United States, through exchange-traded funds (ETFs) with exposure to Pakistan. The analysis encompasses 30 ETFs with varying degrees of exposure to Pakistan, covering the period from January 1, 2016, to February 2024. This research highlights the potential benefits and risks associated with investing in these ETFs, emphasizing the importance of thorough risk assessments and portfolio performance comparisons. By providing descriptive statistics and performance metrics based on historical optimization, this paper aims to equip investors with the necessary insights to make informed decisions when optimizing their portfolios with Pakistan-exposed ETFs. The second part of the paper introduces and assesses dynamic optimization methodologies. This section is designed to explore the adaptability and performance metrics of dynamic optimization techniques in comparison with conventional historical optimization methods. By integrating dynamic optimization into the investigation, this research aims to offer insights into the efficacy of these contrasting methodologies in the context of Pakistan-exposed ETFs. The findings underscore the significance of Pakistan’s market dynamics within the broader context of emerging markets, offering a pathway for diversification and potential growth in investment strategies. ...