Explicit form and robustness of martingale representations
Jacod, Jean ; Méléard, Sylvie ; Protter, Philip
Ann. Probab., Tome 28 (2000) no. 1, p. 1747-1780 / Harvested from Project Euclid
Stochastic integral representation of martingales has been undergoing a renaissance due to questions motivated by stochastic finance theory. In the Brownian case one usually has formulas (of differing degrees of exactness) for the predictable integrands. We extend some of these to Markov cases where one does not necessarily have stochastic integral representation of all martingales. Moreover we study various convergence questions that arise naturally from (for example)approximations of “price processes” via Euler schemes for solutions of stochastic differential equations. We obtain general results of the following type: let $U, U^n$ be random variables with decompositions $$ U = \alpha + \int_{0}^{\infty} \xi_s dX_s + N_\infty, $$ $$ U^n = \alpha_n + \int_{0}^{\infty} \xi^n_s dX^n_s + N^n_\infty, $$ where $X, N, X^n, N^n$ are martingales. If $X^n \to X$ and $U^n \to U$, when and how does $\xi^n\rightarrow\xi?$
Publié le : 2000-10-14
Classification:  Martingale representation,  Clark –Haussmann formula,  stability,  weak convergence,  60H05,  60F17
@article{1019160506,
     author = {Jacod, Jean and M\'el\'eard, Sylvie and Protter, Philip},
     title = {Explicit form and robustness of martingale representations},
     journal = {Ann. Probab.},
     volume = {28},
     number = {1},
     year = {2000},
     pages = { 1747-1780},
     language = {en},
     url = {http://dml.mathdoc.fr/item/1019160506}
}
Jacod, Jean; Méléard, Sylvie; Protter, Philip. Explicit form and robustness of martingale representations. Ann. Probab., Tome 28 (2000) no. 1, pp.  1747-1780. http://gdmltest.u-ga.fr/item/1019160506/