The Impact of Individual Investment Behavior for Retirement Welfare: Evidence from the United States and Germany

function Vt(Wt).²⁶ Finally, the problem is rolled back to the preceding period.

²⁶ The fitting algorithm used here guarantees that the relative risk aversion displayed by the
optimal decisions αtⁱ(Wtⁱ), Ctⁱ (Wtⁱ) is inherited to the continuous approximation of the
value function V_t(W_t).

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