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A novel class of non-reversible Markov chain Monte Carlo schemes relying on continuous-time piecewise-deterministic Markov Processes has recently emerged. In these algorithms, the state of the Markov process evolves according to a…

Methodology · Statistics 2018-05-16 Paul Vanetti , Alexandre Bouchard-Côté , George Deligiannidis , Arnaud Doucet

Multi-state models are frequently applied for representing processes evolving through a discrete set of state. Important classes of multi-state models arise when transitions between states may depend on the time since entry into the current…

Methodology · Statistics 2022-02-28 Rosario Barone , Andrea Tancredi

The theory of ``Markov-up'' processes is being developed. This is a new class of stochastic processes with ``partial'' markovian features; it could also be called ``one-sided Markov''. Such a behavior may be found in the real world and in…

Probability · Mathematics 2024-07-01 D. O. Kalikaeva

The paper introduces a generalization for known probabilistic models such as log-linear and graphical models, called here multiplicative models. These models, that express probabilities via product of parameters are shown to capture…

Artificial Intelligence · Computer Science 2012-06-18 Ydo Wexler , Christopher Meek

We establish several closed pricing formula for various path-independent payoffs, under an exponential L\'evy model driven by the Variance Gamma process. These formulas take the form of quickly convergent series and are obtained via tools…

Pricing of Securities · Quantitative Finance 2020-06-03 Jean-Philippe Aguilar

Mixture models are a fundamental tool in applied statistics and machine learning for treating data taken from multiple subpopulations. The current practice for estimating the parameters of such models relies on local search heuristics…

Machine Learning · Computer Science 2012-09-07 Animashree Anandkumar , Daniel Hsu , Sham M. Kakade

Monotone L\'evy processes with additive increments are defined and studied. It is shown that these processes have a natural Markov structure and their Markov transition semigroups are characterized using the monotone L\'evy-Khintchine…

Probability · Mathematics 2021-04-21 Uwe Franz , Naofumi Muraki

In this work we detail the application of a fast convolution algorithm computing high dimensional integrals to the context of multiplicative noise stochastic processes. The algorithm provides a numerical solution to the problem of…

Computational Finance · Quantitative Finance 2015-03-19 Giacomo Bormetti , Sofia Cazzaniga

We introduce affine Volterra processes, defined as solutions of certain stochastic convolution equations with affine coefficients. Classical affine diffusions constitute a special case, but affine Volterra processes are neither…

Probability · Mathematics 2019-10-23 Eduardo Abi Jaber , Martin Larsson , Sergio Pulido

In this paper we study time-inhomogeneous affine processes beyond the common assumption of stochastic continuity. In this setting times of jumps can be both inaccessible and predictable. To this end we develop a general theory of finite…

Probability · Mathematics 2018-12-21 Martin Keller-Ressel , Thorsten Schmidt , Robert Wardenga

Piecewise Deterministic Monte Carlo algorithms enable simulation from a posterior distribution, whilst only needing to access a sub-sample of data at each iteration. We show how they can be implemented in settings where the parameters live…

We investigate exponential stock models driven by tempered stable processes, which constitute a rich family of purely discontinuous L\'{e}vy processes. With a view of option pricing, we provide a systematic analysis of the existence of…

Mathematical Finance · Quantitative Finance 2025-11-21 Uwe Küchler , Stefan Tappe

We consider affine Markov processes taking values in convex cones. In particular, we characterize all affine processes taking values in an irreducible symmetric cone in terms of certain L\'evy-Khintchine triplets. This is the complete…

Probability · Mathematics 2011-12-07 Christa Cuchiero , Martin Keller-Ressel , Eberhard Mayerhofer , Josef Teichmann

We provide an integral representation for the (implied) copulas of dependent random variables in terms of their moment generating functions. The proof uses ideas from Fourier methods for option pricing. This representation can be used for a…

Probability · Mathematics 2014-06-24 Antonis Papapantoleon

A practical version of the polynomial canonical formalism is developed for normal mesoscopic systems consisting of N independent electrons. Drastic simplification of calculations is attained by means of proper ordering excited states of the…

Mesoscale and Nanoscale Physics · Physics 2007-05-23 N. K. Kuzmenko , V. M. Mikhajlov

We propose an infinitesimal dispersion index for Markov counting processes. We show that, under standard moment existence conditions, a process is infinitesimally (over-) equi-dispersed if, and only if, it is simple (compound), i.e. it…

Statistics Theory · Mathematics 2014-03-25 Carles Breto , Edward L. Ionides

For a general class of diffusion processes with multiplicative noise, describing a variety of physical as well as financial phenomena, mostly typical of complex systems, we obtain the analytical solution for the moments at all times. We…

Statistical Mechanics · Physics 2010-03-18 Giacomo Bormetti , Danilo Delpini

We develop a theory and an algorithm for constructing minimal-degree polynomial moving frames for polynomial curves in an affine space. The algorithm is equivariant under volume-preserving affine transformations of the ambient space and the…

Algebraic Geometry · Mathematics 2024-07-15 Hoon Hong , Irina A. Kogan

Many probabilistic models introduce strong dependencies between variables using a latent multivariate Gaussian distribution or a Gaussian process. We present a new Markov chain Monte Carlo algorithm for performing inference in models with…

Computation · Statistics 2010-03-22 Iain Murray , Ryan Prescott Adams , David J. C. MacKay

A novel algorithm for computing the action of a matrix exponential over a vector is proposed. The algorithm is based on a multilevel Monte Carlo method, and the vector solution is computed probabilistically generating suitable random paths…

Numerical Analysis · Mathematics 2019-07-05 Juan A. Acebron , Jose R. Herrero , Jose Monteiro