Persistent-Transient Policy Evaluation for Markov Chains via Minimal Peripheral Quotients
Abstract
We study fixed-policy evaluation for finite Markov chains that may be reducible and periodic. Classical evaluation methods with gain and bias decomposition are not always diagnostic: the gain records only invariant Ces\`aro averages, while persistent phase-dependent behavior is absorbed into the bias together with genuinely transient effects. We identify the real peripheral invariant subspace of the transition matrix as the source of this ambiguity. Quotienting by is the minimal exact quotient that removes all non-decaying modes and makes the remaining dynamics strictly stable. After choosing a gauge projection with kernel , the reward admits a unique decomposition , where is a persistent regime profile and is a gauge-fixed transient component. An exact comparison with classical normalized gain and bias shows that the new pair reallocates the same information so that all persistent modes are represented in and is transient. This decomposition reconstructs finite-horizon returns, recovers statewise average reward, admits a transient-cost interpretation, and yields a stable estimator under a generative model.
Keywords
Cite
@article{arxiv.2602.00474,
title = {Persistent-Transient Policy Evaluation for Markov Chains via Minimal Peripheral Quotients},
author = {Yang Xu and Vaneet Aggarwal},
journal= {arXiv preprint arXiv:2602.00474},
year = {2026}
}