A pair of explicitly solvable singular stochastic control problems (Q1273450)

A singular control problem with infinite time horizon for diffusion processes is considered. Verification theorems are proved, assuming that the corresponding Hamilton-Jacobi-Bellman equation has a solution in the class \(C^2(\mathbb{R}^n)\) or Sobolev class \(W^{2,p}_{\text{loc}}(\mathbb{R}^1)\). As an application, two problems of linear quadratic type are explicitly solved, and the value functions are expressed in terms of special functions.