Backward stochastic Volterra integral equations on Markov chains

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Abstract

This paper studies Backward Stochastic Volterra Integral Equations (BSVIEs) driven by finite state, continuous time Markov chains. First, the existence and uniqueness of the solutions to two types of BSVIEs are established. Second, some scalar and vector comparison theorems are given. Finally, the applications of BSVIEs to a linear-quadratic optimal control problem and time-inconsistent coherent risk measures are presented.

Original languageEnglish
Pages (from-to)605-639
Number of pages35
JournalStochastics
Volume90
Issue number4
DOIs
StatePublished - 19 May 2018

Keywords

  • Backward stochastic Volterra integral equation
  • Markov chains
  • comparison theorem
  • dynamic risk measures

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