Exponential twist of probability measures: drift correction in term of a generalized gradient

Fuente: arXiv
Saved in:
Bibliographic Details
Main Authors: Bourdais, Thibaut, Oudjane, Nadia, Russo, Francesco
Format: Preprint
Published: 2024
Subjects:
Online Access:
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1866908922118406144
author Bourdais, Thibaut
Oudjane, Nadia
Russo, Francesco
author_facet Bourdais, Thibaut
Oudjane, Nadia
Russo, Francesco
contents In this paper we study the exponential twist, i.e. a path-integral exponential change of measure, of a Markovian reference probability measure $¶$. This type of transformation naturally appears in variational representation formulae originating from the theory of large deviations and can be interpreted in some cases, as the solution of a specific stochastic control problem. Under a very general Markovian assumption on $¶$, we fully characterize the exponential twist probability measure as the solution of a martingale problem and prove that it inherits the Markov property of the reference measure. The ''generator'' of the martingale problem shows a drift depending on a {\it generalized gradient} of some suitable {\it value function} $v$.
format Preprint
id arxiv_https___arxiv_org_abs_2407_08291
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Exponential twist of probability measures: drift correction in term of a generalized gradient
Bourdais, Thibaut
Oudjane, Nadia
Russo, Francesco
Probability
In this paper we study the exponential twist, i.e. a path-integral exponential change of measure, of a Markovian reference probability measure $¶$. This type of transformation naturally appears in variational representation formulae originating from the theory of large deviations and can be interpreted in some cases, as the solution of a specific stochastic control problem. Under a very general Markovian assumption on $¶$, we fully characterize the exponential twist probability measure as the solution of a martingale problem and prove that it inherits the Markov property of the reference measure. The ''generator'' of the martingale problem shows a drift depending on a {\it generalized gradient} of some suitable {\it value function} $v$.
title Exponential twist of probability measures: drift correction in term of a generalized gradient
topic Probability
url https://arxiv.org/abs/2407.08291