Saved in:
Bibliographic Details
Main Author: Zheng, Shiqiu
Format: Preprint
Published: 2025
Subjects:
Online Access:https://arxiv.org/abs/2510.20660
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1866912974098137088
author Zheng, Shiqiu
author_facet Zheng, Shiqiu
contents In this paper, we prove that under the domination condition: \begin{equation*} {\cal{E}}^{-μ,-ν}[-ξ|{\cal{F}}_t]\leqρ_t(ξ)\leq{\cal{E}}^{μ,ν}[-ξ|{\cal{F}}_t],\quad \forallξ\in \mathcal{L}^{\exp}_T\ (\text{resp.}\ L^2(\mathcal{F}_T)),\ \forall t\in[0,T], \end{equation*} where ${\cal{E}}^{μ,ν}$ is the $g$-expectation with generator $μ|z|+ν|z|^2, μ\geq0, ν\geq0$, the dynamic convex (resp. coherent) risk measure $ρ$ admits a representation as a $g$-expectation, whose generator $g$ is convex (resp. sublinear) in the variable $z$ and has a quadratic (resp. linear) growth. As an application, we show that such dynamic convex (resp. coherent) risk measure $ρ$ admits a dual representation, where the penalty term (resp. the set of probability measures) is characterized by the corresponding generator $g$.
format Preprint
id arxiv_https___arxiv_org_abs_2510_20660
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Representation theorems for dynamic convex risk measures
Zheng, Shiqiu
Probability
In this paper, we prove that under the domination condition: \begin{equation*} {\cal{E}}^{-μ,-ν}[-ξ|{\cal{F}}_t]\leqρ_t(ξ)\leq{\cal{E}}^{μ,ν}[-ξ|{\cal{F}}_t],\quad \forallξ\in \mathcal{L}^{\exp}_T\ (\text{resp.}\ L^2(\mathcal{F}_T)),\ \forall t\in[0,T], \end{equation*} where ${\cal{E}}^{μ,ν}$ is the $g$-expectation with generator $μ|z|+ν|z|^2, μ\geq0, ν\geq0$, the dynamic convex (resp. coherent) risk measure $ρ$ admits a representation as a $g$-expectation, whose generator $g$ is convex (resp. sublinear) in the variable $z$ and has a quadratic (resp. linear) growth. As an application, we show that such dynamic convex (resp. coherent) risk measure $ρ$ admits a dual representation, where the penalty term (resp. the set of probability measures) is characterized by the corresponding generator $g$.
title Representation theorems for dynamic convex risk measures
topic Probability
url https://arxiv.org/abs/2510.20660