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A NOTE ON A CASH MANAGEMENT MODEL ALLOWING FOR OVERDRAFTS
Author(s) -
Wirth Andrew
Publication year - 1984
Publication title -
journal of business finance and accounting
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.282
H-Index - 77
eISSN - 1468-5957
pISSN - 0306-686X
DOI - 10.1111/j.1468-5957.1984.tb00770.x
Subject(s) - overdraft , cash , limit (mathematics) , finance , transfer (computing) , business , economics , actuarial science , computer science , mathematics , mathematical analysis , parallel computing
This paper considers the proportion of time a current bank account should be in credit, given the opportunity, overdraft and transfer costs involved. Recurrence relations for the overdraft limit and timing of transfers are also established.