General Matrix-Valued Inhomogeneous Linear Stochastic Differential Equations and Applications

Abstract

The expressions of solutions for general n× m matrix-valued inhomogeneous linear stochastic differential equations are derived. This generalizes a result of Jaschke (2003) for scalar inhomogeneous linear stochastic differential equations. As an application, some n vector-valued inhomogeneous nonlinear stochastic differential equations are reduced to random differential equations, facilitating pathwise study of the solutions.

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