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On capital injections and dividends with tax in a classical risk model

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  • Schmidli, Hanspeter

Abstract

Consider the classical risk model with dividends and capital injections. In addition to the model considered by Kulenko and Schmidli (2008), tax has to be paid for dividends. Capital injections yield tax exemptions. We calculate the value function and derive the optimal dividend strategy.

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  • Schmidli, Hanspeter, 2016. "On capital injections and dividends with tax in a classical risk model," Insurance: Mathematics and Economics, Elsevier, vol. 71(C), pages 138-144.
    • Handle: RePEc:eee:insuma:v:71:y:2016:i:c:p:138-144
    DOI: 10.1016/j.insmatheco.2016.08.004
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    References listed on IDEAS

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    1. Kulenko, Natalie & Schmidli, Hanspeter, 2008. "Optimal dividend strategies in a Cramér-Lundberg model with capital injections," Insurance: Mathematics and Economics, Elsevier, vol. 43(2), pages 270-278, October.
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    Cited by:

    1. Vierkötter, Matthias & Schmidli, Hanspeter, 2017. "On optimal dividends with exponential and linear penalty payments," Insurance: Mathematics and Economics, Elsevier, vol. 72(C), pages 265-270.
    2. Federico, Salvatore & Ferrari, Giorgio & Torrente, Maria Laura, 2023. "Irreversible Reinsurance: Minimization of Capital Injections in Presence of a Fixed Cost," Center for Mathematical Economics Working Papers 682, Center for Mathematical Economics, Bielefeld University.

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