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Local Malliavin Calculus for Lévy Processes and Applications

2012/10/03 by Jorge A. Leòn, Josep Lluís Solé, León, Jorge A. +5
Economics, Econometrics and Finance · Social Sciences · #FOS: Mathematics #Financial Risk and Volatility Modeling #Insurance, Mortality, Demography, Risk Management #Probability (math.PR) #Stochastic processes and financial applications

paper · pdf · doi:10.48550/arxiv.1210.1156

openalex publication_date 2012/10/03 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28

Abstract

In this paper a Malliavin calculus for Lévy processes based on a family of true derivative operators is developed. The starting point is an extension to Lévy processes of the pioneering paper by Carlen and Pardoux [8] for the Poisson process, and our approach includes also the classical Malliavin derivative for Gaussian processes. We obtain a sufficient condition for the absolute continuity of functionals of the Lévy process. As an application, we analyze the absolute continuity of the law of the solution of some stochastic differential equations.

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