In this paper, some decentralized control problems composed of two subsystems are addressed from a special perspective. First, it is pointed out that some subsystems must be unstable to stabilize the overall interconnected system in some special cases. Then, a special kind of decentralized...

The aim of this paper is to generalize Heath, Jarrow and Morton (1992, Econometrica) model of the term structure of interest rates within a jumpdiffusion formework. This is achieved by assuming that the forward rate process has a Levy jump component with general jump size distributions....