Stochastic Optimal Control of Averaged SDDE with Semi-Markov Switching and with Application in Economics

This paper is devoted to the study of stochastic optimal control of averaged stochastic differential delay equations (SDDEs) with semi-Markov switchings and their applications in economics. By using the Dynkin formula and solution of the Dirichlet–Poisson problem, the Hamilton–Jacobi–Bellman (HJB) e...

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Main Authors: Mariya Svishchuk, Anatoliy V. Swishchuk
Format: Article
Language:English
Published: MDPI AG 2025-04-01
Series:Mathematics
Subjects:
Online Access:https://www.mdpi.com/2227-7390/13/9/1440
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author Mariya Svishchuk
Anatoliy V. Swishchuk
author_facet Mariya Svishchuk
Anatoliy V. Swishchuk
author_sort Mariya Svishchuk
collection DOAJ
description This paper is devoted to the study of stochastic optimal control of averaged stochastic differential delay equations (SDDEs) with semi-Markov switchings and their applications in economics. By using the Dynkin formula and solution of the Dirichlet–Poisson problem, the Hamilton–Jacobi–Bellman (HJB) equation and the inverse HJB equation are derived. Applications are given to a new Ramsey stochastic models in economics, namely the averaged Ramsey diffusion model with semi-Markov switchings. A numerical example is presented as well.
format Article
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institution DOAJ
issn 2227-7390
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publishDate 2025-04-01
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spelling doaj-art-be8fbd7fe3b64cc08061b37c4850b6022025-08-20T02:58:44ZengMDPI AGMathematics2227-73902025-04-01139144010.3390/math13091440Stochastic Optimal Control of Averaged SDDE with Semi-Markov Switching and with Application in EconomicsMariya Svishchuk0Anatoliy V. Swishchuk1Department of Mathematics and Computer Sciences, Mount Royal University, Calgary, AB T3E 6K6, CanadaDepartment of Mathematics and Statistics, University of Calgary, Calgary, AB T2N 1N4, CanadaThis paper is devoted to the study of stochastic optimal control of averaged stochastic differential delay equations (SDDEs) with semi-Markov switchings and their applications in economics. By using the Dynkin formula and solution of the Dirichlet–Poisson problem, the Hamilton–Jacobi–Bellman (HJB) equation and the inverse HJB equation are derived. Applications are given to a new Ramsey stochastic models in economics, namely the averaged Ramsey diffusion model with semi-Markov switchings. A numerical example is presented as well.https://www.mdpi.com/2227-7390/13/9/1440stochastic differential delay equationsstochastic optimal controlHamilton–Jacobi–Bellman equationDynkin formulaDirichlet–Poisson problemeconomics applications
spellingShingle Mariya Svishchuk
Anatoliy V. Swishchuk
Stochastic Optimal Control of Averaged SDDE with Semi-Markov Switching and with Application in Economics
Mathematics
stochastic differential delay equations
stochastic optimal control
Hamilton–Jacobi–Bellman equation
Dynkin formula
Dirichlet–Poisson problem
economics applications
title Stochastic Optimal Control of Averaged SDDE with Semi-Markov Switching and with Application in Economics
title_full Stochastic Optimal Control of Averaged SDDE with Semi-Markov Switching and with Application in Economics
title_fullStr Stochastic Optimal Control of Averaged SDDE with Semi-Markov Switching and with Application in Economics
title_full_unstemmed Stochastic Optimal Control of Averaged SDDE with Semi-Markov Switching and with Application in Economics
title_short Stochastic Optimal Control of Averaged SDDE with Semi-Markov Switching and with Application in Economics
title_sort stochastic optimal control of averaged sdde with semi markov switching and with application in economics
topic stochastic differential delay equations
stochastic optimal control
Hamilton–Jacobi–Bellman equation
Dynkin formula
Dirichlet–Poisson problem
economics applications
url https://www.mdpi.com/2227-7390/13/9/1440
work_keys_str_mv AT mariyasvishchuk stochasticoptimalcontrolofaveragedsddewithsemimarkovswitchingandwithapplicationineconomics
AT anatoliyvswishchuk stochasticoptimalcontrolofaveragedsddewithsemimarkovswitchingandwithapplicationineconomics