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We formulate a dynamic reinsurance problem in which the insurer seeks to control the terminal distribution of its surplus while minimizing the L2-norm of the ceded risk. Using techniques from martingale optimal transport, we show that,…

Risk Management · Quantitative Finance 2026-01-16 Beatrice Acciaio , Brandon Garcia Flores , Antonio Marini , Gudmund Pammer

In dynamic capital structure models with an investor break-even condition, the firm's Bellman equation may not generate a contraction mapping, so the standard existence and uniqueness conditions do not apply. First, we provide an example…

General Finance · Quantitative Finance 2022-02-15 Hong Chen , Murray Zed Frank

The discrete autonomous/non-autonomous Toda equations and the discrete Lotka-Volterra system are important integrable discrete systems in fields such as mathematical physics, mathematical biology and statistical physics. They also have…

Mathematical Physics · Physics 2016-03-08 Masato Shinjo , Yoshimasa Nakamura , Masashi Iwasaki , Koichi Kondo

Consider an insurance company exposed to a stochastic economic environment that contains two kinds of risk. The first kind is the insurance risk caused by traditional insurance claims, and the second kind is the financial risk resulting…

Statistics Theory · Mathematics 2015-07-29 Jinzhu Li , Qihe Tang

We consider an insurance company whose surplus is represented by the classical Cramer-Lundberg process. The company can invest its surplus in a risk free asset and in a risky asset, governed by the Black-Scholes equation. There is a…

Portfolio Management · Quantitative Finance 2011-12-20 Tatiana Belkina , Christian Hipp , Shangzhen Luo , Michael Taksar

The aim of the present paper is to introduce a new numerical method for solving nonlinear Volterra integro-differential equations involving delay. We apply trapezium rule to the integral involved in the equation. Further, Daftardar-Gejji…

Numerical Analysis · Mathematics 2020-09-25 Aman Jhinga , Jayvant Patade , Varsha Daftardar-Gejji

The boundary value problems for linear and nonlinear singular degenerate differential-operator equations are studied. We prove a well-posedeness of linear problem and optimal regularity result for the nonlinear problem which occur in fluid…

Analysis of PDEs · Mathematics 2017-07-06 Veli Shakhmurov

This study investigates an optimal investment problem for an insurance company operating under the Cramer-Lundberg risk model, where investments are made in both a risky asset and a risk-free asset. In contrast to other literature that…

Mathematical Finance · Quantitative Finance 2024-06-25 J. Cerda-Hernandez , A. Sikov , A. Ramos

We investigate the well-posedness of scalar conservation laws whose flux depends on the solution both pointwise and nonlocally through integral averages. Our analysis is based on a fixed-point formulation, in which the nonlocal dependence…

Analysis of PDEs · Mathematics 2026-04-13 Xiaoqian Gong , Alexander Keimer , Lorenzo Liverani , Hossein Nick Zinat Matin

We propose a model in which dividend payments occur at regular, deterministic intervals in an otherwise continuous model. This contrasts traditional models where either the payment of continuous dividends is controlled or the dynamics are…

Optimization and Control · Mathematics 2019-07-24 Jussi Keppo , Max Reppen , H. Mete Soner

We address a long-standing open problem in risk theory, namely the optimal strategy to pay out dividends from an insurance surplus process, if the dividend rate can never be decreased. The optimality criterion here is to maximize the…

Portfolio Management · Quantitative Finance 2021-06-08 Hansjoerg Albrecher , Pablo Azcue , Nora Muler

We discuss an eigenvalue problem which arises in the studies of asymptotic stability of a self-similar attractor in the sigma model. This problem is rather unusual from the viewpoint of the spectral theory of linear operators and requires…

Mathematical Physics · Physics 2010-05-17 Piotr Bizoń

The sufficient conditions are obtained for existence of the main solution of the nonlinear Volterra integral equation of the second kind on the semi-axis and on a finite interval. The method for computation of this boundary interval is…

Optimization and Control · Mathematics 2013-03-01 Denis N. Sidorov

This paper investigates market-consistent valuation of insurance liabilities in the context of, for instance, Solvency II and to some extent IFRS 4. We propose an explicit and consistent framework for the valuation of insurance liabilities…

Pricing of Securities · Quantitative Finance 2011-01-04 Christoph Moehr

We consider the linear complementarity problem with uncertain data modeled by intervals, representing the range of possible values. Many properties of the linear complementarity problem (such as solvability, uniqueness, convexity, finite…

Optimization and Control · Mathematics 2025-10-07 Milan Hladík

This paper deals with the initial value problem for the multi-term fractional differential equation. The fractional derivative is defined in the Caputo sense. Firstly the initial value problem is transformed into a equivalent Volterra-type…

Classical Analysis and ODEs · Mathematics 2017-05-08 Chung-Sik Sin , Shusen Cheng , Gang-Il Ri , Mun-Chol Kim

In this paper we investigate the pricing problem of a pure endowment contract when the insurer has a limited information on the mortality intensity of the policyholder. The payoff of this kind of policies depends on the residual life time…

Mathematical Finance · Quantitative Finance 2020-07-23 Claudia Ceci , Katia Colaneri , Alessandra Cretarola

We consider the following model equation: \begin{equation} \omega_{t} = Z_{11}\omega\,\omega , \end{equation} where \begin{equation} Z_{11} = \partial_{11}\Delta^{-1} \end{equation} is a Calderon-Zygmond operator. We get the existence of…

Analysis of PDEs · Mathematics 2025-12-18 Dapeng Du , Jingyu Li , Xinyue Shi

In this paper we introduce a numerical method for solving nonlinear Volterra integro-differential equations. In the first step, we apply implicit trapezium rule to discretize the integral in given equation. Further, the Daftardar-Gejji and…

Numerical Analysis · Mathematics 2022-08-29 Sachin Bhalekar , Jayvant Patade

We investigate the quantitative unique continuation properties of solutions to second order elliptic equations with singular lower order terms. The main theorem presents a quantification of the strong unique continuation property for…

Analysis of PDEs · Mathematics 2019-03-12 Blair Davey