The Optimal Consumption, Investment and Life Insurance for Wage Earners under Inside Information and Inflation

This paper studies the dynamically optimal consumption, investment and life-insurance strategies for a wage earners under inside information inflation. Assume that earner can invest in risk-free asset, risky asset an inflation-indexed bond obtain some additional on from financial market. By maximizing expected utility of earner’s inheritance terminal wealth, we earner. The method this is mainly based (dynamical) stochastic control theory technique enlargement filtrations. Moreover, sensitivity analysis carried out, which reveals with tends to increase his/her consumption investment, while reducing purchase life insurance.