Optimal Financing and Dividend Strategies with Time Inconsistency in a Regime Switching Economy

<figure class="figure-group responsive"><div class="sub-figure" id="a"><object data="https://static.hindawi.com/articles/complexity/volume-2019/8479503/figures/8479503.fig.005a.svgz" name="8479503.fig.005a" type="image/svg+xml"></object><div class="fig-label">(a) Average  in state </div></div><div class="sub-figure" id="b"><object data="https://static.hindawi.com/articles/complexity/volume-2019/8479503/figures/8479503.fig.005b.svgz" name="8479503.fig.005b" type="image/svg+xml"></object><div class="fig-label">(b) Average  in state </div></div></figure>

<p>Average <svg height="9.39034pt" id="M427" style="vertical-align:-3.42943pt" version="1.1" viewbox="-0.0498162 -5.96091 6.50656 9.39034" width="6.50656pt" xmlns="http://www.w3.org/2000/svg"><g transform="matrix(.013,0,0,-0.013,0,0)"><path d="M474 429L457 433C435 440 389 448 367 448C348 448 323 446 309 443C266 434 195 406 148 366C78 307 23 210 23 101C23 35 55 -12 92 -12C118 -12 146 1 196 35C247 70 311 130 346 173H348L281 -148C268 -211 256 -221 208 -229L191 -232L187 -257L433 -245L437 -219L411 -216C357 -210 350 -205 362 -140L427 207C447 315 461 381 474 429ZM387 387C379 337 363 262 355 236C318 180 201 57 142 57C126 57 112 81 112 128C112 205 150 321 220 376C244 395 280 403 312 403C345 403 370 396 387 387Z"></path></g></svg> with time inconsistency in both states.</p>

Complexity

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Figure 5

Figure 5: Optimal Financing and Dividend Strategies with Time Inconsistency in a Regime Switching Economy 