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Stochastic Volterra equations with time-changed Lévy noise and maximum principles

2020/11/14 by Giulia Di Nunno, di Nunno, Giulia, Michele Giordano +1
Economics, Econometrics and Finance · Environmental Science · Physics and Astronomy · #Advanced Thermodynamics and Statistical Mechanics #Ecosystem dynamics and resilience #FOS: Mathematics #Optimization and Control (math.OC) #Probability (math.PR) #Stochastic processes and financial applications

paper · pdf · doi:10.48550/arxiv.2011.07341

openalex publication_date 2020/11/14 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28

Abstract

Motivated by a problem of optimal harvesting of natural resources, we study a control problem for Volterra type dynamics driven by time-changed Lévy noises, which are in general not Markovian. To exploit the nature of the noise, we make use of different kind of information flows within a maximum principle approach. For this we work with backward stochastic differential equations (BSDE) with time-change and exploit the non-anticipating stochastic derivative introduced in [15]. We prove both a sufficient and necessary stochastic maximum principle.

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