Föllmer–Dirichlet Processes

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Abstract

An important class of finite quadratic variation processes is the one of (Föllmer–)Dirichlet processes which are the sum of a local martingale and a zero quadratic variation process. An interesting example is the one of Lyons–Zheng processes which are the generalizations of time-reversible semimartingales in the class of Dirichlet processes. A Bessel process in low dimension is not a semimartingale, nevertheless it is a Lyons–Zheng process. We revisit the Bouleau–Yor formula which extends Itô-Tanaka formula to the case of non-convex functions of semimartingales.

Original languageEnglish
Title of host publicationBocconi and Springer Series
PublisherSpringer-Verlag Italia s.r.l.
Pages491-529
Number of pages39
DOIs
Publication statusPublished - 1 Jan 2022

Publication series

NameBocconi and Springer Series
Volume11
ISSN (Print)2039-1471
ISSN (Electronic)2039-148X

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