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Dynamics of a mean-reverting stochastic volatility model with regime switching

Probability 2019-12-16 v2

Abstract

In this paper, we consider a mean-reverting stochastic volatility equation with regime switching, and present some sufficient conditions for the existence of global positive solution, asymptotic boundedness in pth moment, positive recurrence and existence of stationary distribution of this equation. Some results obtained in this paper extend the ones in literature. Example is given to verify the results by simulation.

Keywords

Cite

@article{arxiv.1903.02697,
  title  = {Dynamics of a mean-reverting stochastic volatility model with regime switching},
  author = {Yanling Zhu and Kai Wang and Yong Ren},
  journal= {arXiv preprint arXiv:1903.02697},
  year   = {2019}
}

Comments

11pages,3figures