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Skorohod Equation and Reflected Backward Stochastic Differential Equations

By using the Skorohod equation we derive an iteration procedure which allows us to solve a class of reflected backward stochastic differential equations with non-linear resistance induced by the reflected local time. In particular, we present a new method to study the reflected BSDE proposed first by El Karoui et al. \cite{MR1434123}.

preprint2011arXivOpen access
Zhongmin QianMingyu Xu
math.PR
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Open access2 authors1 topic
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Zhongmin QianMingyu Xu

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