We consider a government that aims at reducing the debt-to-(gross domestic product) (GDP) ratio of a country. The government observes the level of the debt-to-GDP ratio and an indicator of the state of the economy, but does not directly observe the development of the underlying macroeconomic...

We study an optimal liquidation problem with multiplicative price impact in which the trend of the asset price is an unobservable Bernoulli random variable. The investor aims at selling over an infinite time horizon a fixed amount of assets in order to maximise a net expected profit functional,...