Backward stochastic differential equations with nonlinear Young drivers II

Fuente: arXiv
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Main Authors: Song, Jian, Zhang, Huilin, Zhang, Kuan
Format: Preprint
Published: 2025
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author Song, Jian
Zhang, Huilin
Zhang, Kuan
author_facet Song, Jian
Zhang, Huilin
Zhang, Kuan
contents This paper continues our previous work (Part I, arXiv:2504.18632v3) on the well-posedness of backward stochastic differential equations (BSDEs) involving a nonlinear Young integral of the form $\int_{t}^{T}g(Y_{r})η(dr,X_{r})$, with particular focus on the case where the driver $η(t,x)$ is unbounded. To address this setting, we develop a new localization method that extends solvability from BSDEs with bounded drivers to those with unbounded ones. As a direct application, we derive a nonlinear Feynman-Kac formula for a class of partial differential equations driven by Young signals (Young PDEs). Moreover, employing the proposed localization method, we obtain error estimates that compare Cauchy-Dirichlet problems on bounded domains with their whole-space Cauchy counterparts, with special attention to non-Lipschitz PDEs.
format Preprint
id arxiv_https___arxiv_org_abs_2509_05183
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Backward stochastic differential equations with nonlinear Young drivers II
Song, Jian
Zhang, Huilin
Zhang, Kuan
Probability
60L20, 60L50, 60H10
This paper continues our previous work (Part I, arXiv:2504.18632v3) on the well-posedness of backward stochastic differential equations (BSDEs) involving a nonlinear Young integral of the form $\int_{t}^{T}g(Y_{r})η(dr,X_{r})$, with particular focus on the case where the driver $η(t,x)$ is unbounded. To address this setting, we develop a new localization method that extends solvability from BSDEs with bounded drivers to those with unbounded ones. As a direct application, we derive a nonlinear Feynman-Kac formula for a class of partial differential equations driven by Young signals (Young PDEs). Moreover, employing the proposed localization method, we obtain error estimates that compare Cauchy-Dirichlet problems on bounded domains with their whole-space Cauchy counterparts, with special attention to non-Lipschitz PDEs.
title Backward stochastic differential equations with nonlinear Young drivers II
topic Probability
60L20, 60L50, 60H10
url https://arxiv.org/abs/2509.05183