Improvement to the Expected Discounted Penalty Function for a Classical Risk Model with a Threshold Dividend Strategy

Author:

Yu Wen Guang1,Liu Zhi2

Affiliation:

1. Shandong Economic University

2. Shandong Trade Unions’ College

Abstract

In this paper, we study the expected discounted penalty function for a classical risk model in which a threshold dividend strategy is used for a classical risk model and the discount interest force process is not a constant, but a stochastic process driven by Poisson process and Wiener process. In this model, we derive and solve an integro-differential equation for the expected discounted penalty function.

Publisher

Trans Tech Publications, Ltd.

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