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This paper develops power series expansions of a general class of moment functions, including transition densities and option prices, of continuous-time Markov processes, including jump--diffusions. The proposed expansions extend the ones…

Econometrics · Economics 2023-08-21 Dennis Kristensen , Young Jun Lee , Antonio Mele

Asymptotic theory for approximate martingale estimating functions is generalised to diffusions with finite-activity jumps, when the sampling frequency and terminal sampling time go to infinity. Rate optimality and efficiency are of…

Methodology · Statistics 2018-09-05 Nina Munkholt Jakobsen , Michael Sørensen

In this paper, we provide a solution to two problems which have been open in default time modeling in credit risk. We first show that if $\tau$ is an arbitrary random (default) time such that its Az\'ema's supermartingale…

Risk Management · Quantitative Finance 2008-12-02 Delia Coculescu , Ashkan Nikeghbali

Let $X$ be a point process and let $\mathbb{X}$ denote the filtration generated by $X$. In this paper we study martingale representation theorems in the filtration $\mathbb{G}$ obtained as an initial and progressive enlargement of the…

Probability · Mathematics 2020-09-09 Paolo Di Tella , Monique Jeanblanc

We give sufficient conditions on the underlying filtration such that all totally inaccessible stopping times have compensators which are absolutely continuous. If a semimartingale, strong Markov process X has a representation as a solution…

Probability · Mathematics 2010-05-19 Svante Janson , Sokhna M'Baye , Philip Protter

The aim of this paper is to obtain estimates for the density of the law of a specific nonlinear diffusion process at any positive bounded time. This process is issued from kinetic theory and is called Landau process, by analogy with the…

Probability · Mathematics 2016-08-16 Hélène Guérin , Sylvie Méléard , Eulalia Nualart

We develop a Thermodynamic Formalism for bounded continuous potentials defined on the sequence space $X\equiv E^{\mathbb{N}}$, where $E$ is a general Borel standard space. In particular, we introduce meaningful concepts of entropy and…

Dynamical Systems · Mathematics 2020-06-26 L. Cioletti , E. A. Silva , M. Stadlbauer

We consider a piecewise deterministic Markov decision process, where the expected exponential utility of total (nonnegative) cost is to be minimized. The cost rate, transition rate and post-jump distributions are under control. The state…

Optimization and Control · Mathematics 2017-11-22 Xin Guo , Yi Zhang

We study a system of non-interacting active particles, propelled by colored noises, characterized by an activity time $\tau$, and confined by a double-well potential. A straightforward application of this system is the problem of barrier…

Statistical Mechanics · Physics 2019-01-30 Lorenzo Caprini , Umberto Marini Bettolo Marconi , Andrea Puglisi , Angelo Vulpiani

These short lecture notes contain a not too technical introduction to point processes on the time line. The focus lies on defining these processes using the conditional intensity function. Furthermore, likelihood inference, methods of…

Methodology · Statistics 2018-06-04 Jakob Gulddahl Rasmussen

We propose in this work an original estimator of the conditional intensity of a marker-dependent counting process, that is, a counting process with covariates. We use model selection methods and provide a non asymptotic bound for the risk…

Statistics Theory · Mathematics 2008-10-24 F. Comte , S. Gaïffas , A. Guilloux

This paper presents a nonparametric method for estimating the conditional density associated to the jump rate of a piecewise-deterministic Markov process. In our framework, the estimation needs only one observation of the process within a…

Statistics Theory · Mathematics 2012-07-12 Romain Azaïs , François Dufour , Anne Gégout-Petit

In this paper, we use the Hawkes process to model the sequence of failure, i.e., events of compressor station and conduct survival analysis on various failure events of the compressor station. However, until now, nearly all relevant…

Machine Learning · Computer Science 2021-12-28 Lu-ning Zhang , Jian-wei Liu , Xin Zuo

Let $X_t^\sharp$ be a multivariate process of the form $X_t =Y_t - Z_t$, $X_0=x$, killed at some terminal time $T$, where $Y_t$ is a Markov process having only jumps of the length smaller than $\delta$, and $Z_t$ is a compound Poisson…

Probability · Mathematics 2020-10-22 Victoria Knopova , Zbigniew Palmowski

We study the non-equilibrium dynamics of a one-dimensional interacting particle system that is a mixture of the voter model and the exclusion process. With the process started from a finite perturbation of the ground state Heaviside…

Probability · Mathematics 2010-11-30 Iain M. MacPhee , Mikhail V. Menshikov , Stanislav Volkov , Andrew R. Wade

Let $T_1^{(\mu)}$ be the first hitting time of the point 1 by the Bessel process with index $\mu\in \R$ starting from $x>1$. Using an integral formula for the density $q_x^{(\mu)}(t)$ of $T_1^{(\mu)}$, obtained in Byczkowski, Ryznar (Studia…

Probability · Mathematics 2011-06-08 Tomasz Byczkowski , Jacek Malecki , Michal Ryznar

In this paper, we are concerned with centered Markov Additive Processes $\{(X_t,Y_t)\}_{t\in\T}$ where the driving Markov process $\{X_t\}_{t\in\T}$ has a finite state space. Under suitable conditions, we provide a local limit theorem for…

Probability · Mathematics 2013-06-25 Loïc Hervé , James Ledoux

Switching dynamical systems provide a powerful, interpretable modeling framework for inference in time-series data in, e.g., the natural sciences or engineering applications. Since many areas, such as biology or discrete-event systems, are…

Machine Learning · Computer Science 2021-09-30 Lukas Köhs , Bastian Alt , Heinz Koeppl

We study an infinite horizon optimal stopping problem which arises naturally in the optimal timing of a firm/project sale or in the valuation of natural resources: the functional to be maximised is a sum of a discounted running reward and a…

Optimization and Control · Mathematics 2016-12-08 Jan Palczewski , Lukasz Stettner

A possibly time-dependent transition intensity matrix or generator $(Q(t))$ characterizes the law of a Markov jump process (MP). For a time homogeneous MP, the transition probability matrix (TPM) can be expressed as a matrix exponential of…

Methodology · Statistics 2025-07-23 Dario Gasbarra , Sangita Kulathinal , Etienne Sebag