A Calculus of Variations Approach to Stochastic Control

Fuente: arXiv
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Main Author: Lorig, Matthew
Format: Preprint
Published: 2025
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author Lorig, Matthew
author_facet Lorig, Matthew
contents We use classical tools from calculus of variations to formally derive necessary conditions for a Markov control to be optimal in a standard finite time horizon stochastic control problem. As an example, we solve the well-known Merton portfolio optimization problem.
format Preprint
id arxiv_https___arxiv_org_abs_2509_01744
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle A Calculus of Variations Approach to Stochastic Control
Lorig, Matthew
Optimization and Control
Mathematical Finance
We use classical tools from calculus of variations to formally derive necessary conditions for a Markov control to be optimal in a standard finite time horizon stochastic control problem. As an example, we solve the well-known Merton portfolio optimization problem.
title A Calculus of Variations Approach to Stochastic Control
topic Optimization and Control
Mathematical Finance
url https://arxiv.org/abs/2509.01744