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Rough stochastic volatility models have attracted a lot of attentions recently, in particular for the linear option pricing problem. In this paper, starting with power utilities, we propose to use a martingale distortion representation of…

数理金融 · 定量金融 2017-12-12 Jean-Pierre Fouque , Ruimeng Hu

We define a graph-based rate optimization problem and consider its computation, which provides a unified approach to the computation of various theoretical limits, including the (conditional) graph entropy, rate-distortion functions and…

信息论 · 计算机科学 2025-03-18 Deheng Yuan , Tao Guo , Zhongyi Huang , Shi Jin

We consider a model of optimal investment and consumption with both habit formation and partial observations in incomplete It\^{o} processes market. The investor chooses his consumption under the addictive habits constraint while only…

投资组合管理 · 定量金融 2014-08-12 Xiang Yu

This paper examines a continuous time intertemporal consumption and portfolio choice problem with a stochastic differential utility preference of Epstein-Zin type for a robust investor, who worries about model misspecification and seeks…

最优化与控制 · 数学 2021-03-09 Jiangyan Pu , Qi Zhang

In this paper, we study an optimal dividend and capital-injection problem in a Cram\'er--Lundberg model where claim arrivals follow a Hawkes process, capturing clustering effects often observed in insurance portfolios. We establish key…

最优化与控制 · 数学 2025-11-27 Paulin Aubert , Etienne Chevalier , Vathana Ly Vath

We study stochastic team (known also as decentralized stochastic control or identical interest stochastic dynamic game) problems with large or countably infinite number of decision makers, and characterize existence and structural…

最优化与控制 · 数学 2021-07-08 Sina Sanjari , Naci Saldi , Serdar Yüksel

We study a utility maximization problem in a financial market with a stochastic drift process, combining a worst-case approach with filtering techniques. Drift processes are difficult to estimate from asset prices, and at the same time…

投资组合管理 · 定量金融 2021-11-04 Jörn Sass , Dorothee Westphal

Reflected diffusions naturally arise in many problems from applications ranging from economics and mathematical biology to queueing theory. In this paper we consider a class of infinite time-horizon singular stochastic control problems for…

最优化与控制 · 数学 2017-11-13 Giorgio Ferrari

In an incomplete continuous-time securities market with uncertainty generated by Brownian motions, we derive closed-form solutions for the equilibrium interest rate and market price of risk processes. The economy has a finite number of…

综合金融 · 定量金融 2012-01-06 Peter Ove Christensen , Kasper Larsen

We consider the problem of robustly maximizing the growth rate of investor wealth in the presence of model uncertainty. Possible models are all those under which the assets' region $E$ and instantaneous covariation $c$ are known, and where…

投资组合管理 · 定量金融 2018-01-22 Constantinos Kardaras , Scott Robertson

We study a discounted singular stochastic control problem driven by a general L\'evy process, where the objective is to minimize a cost functional composed of a running cost and a control cost that depends on the current state of the…

最优化与控制 · 数学 2026-05-18 Mordecki Ernesto , Muler Nora , Oliú Facundo

In this paper, we propose a unified stochastic optimal control framework that integrates time-optimal control problems with classical stochastic optimal control formulations. Unlike conventional deterministic time-optimal control models,…

最优化与控制 · 数学 2025-10-21 Shuzhen Yang

We consider the classical multi-asset Merton investment problem under drift uncertainty, i.e. the asset price dynamics are given by geometric Brownian motions with constant but unknown drift coefficients. The investor assumes a prior drift…

投资组合管理 · 定量金融 2024-02-22 Nicole Bäuerle , Antje Mahayni

In this article we consider an optimization problem of expected utility maximization of continuous-time trading in a financial market. This trading is constrained by a benchmark for a utility-based shortfall risk measure. The market…

数理金融 · 定量金融 2016-10-28 Oliver Janke

We examine the analytic extension of solutions of linear, constant-coefficient initial-boundary value problems outside their spatial domain of definition. We use the Unified Transform Method or Method of Fokas, which gives a representation…

偏微分方程分析 · 数学 2022-06-22 Matthew Farkas , Jorge Cisneros , Bernard Deconinck

The paper investigates the consumption-investment problem for an investor with Epstein-Zin utility in an incomplete market. Closed, not necessarily convex, constraints are imposed on strategies. The optimal consumption and investment…

数理金融 · 定量金融 2023-05-25 Zixin Feng , Dejian Tian

In this paper, we study an optimal mean-variance investment-reinsurance problem for an insurer (she) under a Cram\'er-Lundberg model with random coefficients. At any time, the insurer can purchase reinsurance or acquire new business and…

投资组合管理 · 定量金融 2024-06-18 Xiaomin Shi , Zuo Quan Xu

Incomplete financial markets are considered, defined by a multi-dimensional non-homogeneous diffusion process, being the direct sum of an It\^{o} process (the price process), and another non-homogeneous diffusion process (the exogenous…

最优化与控制 · 数学 2014-05-15 Yalçin Aktar , Erik Taflin

This paper concerns rollout and certainty-equivalent rollout policies for stochastic shortest path problems with absorbing terminal states. The main result provides a direct non-asymptotic performance certificate for a fixed rollout policy:…

最优化与控制 · 数学 2026-05-25 Anders Hansson , Bo Wahlberg

The Markowitz problem consists of finding in a financial market a self-financing trading strategy whose final wealth has maximal mean and minimal variance. We study this in continuous time in a general semimartingale model and under cone…

投资组合管理 · 定量金融 2012-06-04 Christoph Czichowsky , Martin Schweizer