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On the Kolmogorov equation associated with Volterra equations and Fractional Brownian Motion

2023/09/24 by Alessandro Bondi, Bondi, Alessandro, Franco Flandoli +1 · 2 citations
Economics, Econometrics and Finance · Mathematics · Social Sciences · #35R15 #45D05 #60G22 #60H15 #FOS: Mathematics #Insurance, Mortality, Demography, Risk Management #Mathematical Biology Tumor Growth #Probability (math.PR) #Stochastic processes and financial applications

paper · pdf · doi:10.48550/arxiv.2309.13597

openalex publication_date 2023/09/24 · openalex created_date 2023/09/27 · openalex updated_date 2026/07/28

Abstract

We consider a Volterra convolution equation in ℝd perturbed with an additive fractional Brownian motion of Riemann-Liouville type with Hurst parameter H∈ (0,1). We show that its solution solves a stochastic partial differential equation (SPDE) in the Hilbert space of square-integrable functions. Such an equation motivates our study of an unconventional class of SPDEs requiring an original extension of the drift operator and its Fréchet differentials. We prove that these SPDEs generate a Markov stochastic flow which is twice Fréchet differentiable with respect to the initial data. This stochastic flow is then employed to solve, in the classical sense of infinite dimensional calculus, the path-dependent Kolmogorov equation corresponding to the SPDEs. In particular, we associate a time-dependent infinitesimal generator with the fractional Brownian motion. In the final section, we show some obstructions in the analysis of the mild formulation of the Kolmogorov equation for SPDEs driven by the same infinite dimensional noise. This problem, which is relevant to the theory of regularization-by-noise, remains open for future research.

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