On a Discrete-Time Risk Model with Random Income and a Constant Dividend Barrier

In this paper, a discrete-time risk model with random income and a constant dividend barrier is considered. Under such a dividend policy, once the insurer’s reserve hits the level bb>0, the excess of the reserve over b is paid off as dividends. We derive a homogeneous difference equation for the...

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Main Authors: Zhenhua Bao, Junqing Huang, Jing Wang
Format: Article
Language:English
Published: Wiley 2021-01-01
Series:Journal of Mathematics
Online Access:http://dx.doi.org/10.1155/2021/5575187
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author Zhenhua Bao
Junqing Huang
Jing Wang
author_facet Zhenhua Bao
Junqing Huang
Jing Wang
author_sort Zhenhua Bao
collection DOAJ
description In this paper, a discrete-time risk model with random income and a constant dividend barrier is considered. Under such a dividend policy, once the insurer’s reserve hits the level bb>0, the excess of the reserve over b is paid off as dividends. We derive a homogeneous difference equation for the expected present value of dividend payments. Corresponding solution procedures for the difference equation are invested. Finally, we give a numerical example to illustrate the applicability of the results obtained.
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spelling doaj-art-d2903be9468f4ac8ad99d7e3378008d52025-08-20T03:24:08ZengWileyJournal of Mathematics2314-46292314-47852021-01-01202110.1155/2021/55751875575187On a Discrete-Time Risk Model with Random Income and a Constant Dividend BarrierZhenhua Bao0Junqing Huang1Jing Wang2School of Mathematics, Liaoning Normal University, Dalian 116029, ChinaSchool of Mathematics, Liaoning Normal University, Dalian 116029, ChinaSchool of Mathematics, Liaoning Normal University, Dalian 116029, ChinaIn this paper, a discrete-time risk model with random income and a constant dividend barrier is considered. Under such a dividend policy, once the insurer’s reserve hits the level bb>0, the excess of the reserve over b is paid off as dividends. We derive a homogeneous difference equation for the expected present value of dividend payments. Corresponding solution procedures for the difference equation are invested. Finally, we give a numerical example to illustrate the applicability of the results obtained.http://dx.doi.org/10.1155/2021/5575187
spellingShingle Zhenhua Bao
Junqing Huang
Jing Wang
On a Discrete-Time Risk Model with Random Income and a Constant Dividend Barrier
Journal of Mathematics
title On a Discrete-Time Risk Model with Random Income and a Constant Dividend Barrier
title_full On a Discrete-Time Risk Model with Random Income and a Constant Dividend Barrier
title_fullStr On a Discrete-Time Risk Model with Random Income and a Constant Dividend Barrier
title_full_unstemmed On a Discrete-Time Risk Model with Random Income and a Constant Dividend Barrier
title_short On a Discrete-Time Risk Model with Random Income and a Constant Dividend Barrier
title_sort on a discrete time risk model with random income and a constant dividend barrier
url http://dx.doi.org/10.1155/2021/5575187
work_keys_str_mv AT zhenhuabao onadiscretetimeriskmodelwithrandomincomeandaconstantdividendbarrier
AT junqinghuang onadiscretetimeriskmodelwithrandomincomeandaconstantdividendbarrier
AT jingwang onadiscretetimeriskmodelwithrandomincomeandaconstantdividendbarrier