On the consumption/distribution theorem under the long-run growth criterion subject to a drawdown constraint
Consider any discrete time sequence of investment fortunes Fn which has a finite long-run growth rate when subject to the present value capital drawdown constraint Fne-rn ≥ λ* max0≤k≤nFke-rk, where 0 ≤ λ* < 1, in the presence of a riskless asset affording a return of er dollars per time period per dollar invested. We show that money can be withdrawn for consumption from the invested capital withou
