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As well known, all functionals of a Markov process may be expressed in terms of the generator operator, modulo some analytic work. In the case of spectrally negative Markov processes however, it is conjectured that everything can be…

Probability · Mathematics 2016-12-05 Florin Avram , Xiaowen Zhou

The first passage time process of a L\'evy subordinator with heavy-tailed L\'evy measure has long-range dependent paths. The random fluctuations that appear under two natural schemes of summation and time scaling of such stochastic…

Probability · Mathematics 2012-04-02 Ingemar Kaj , Anders Martin-Löf

By using large deviation theory that deals with the decay of probabilities of rare events on an exponential scale, we study the longtime behaviors and establish action functionals for scaled Brownian motion and L\'evy processes with…

Dynamical Systems · Mathematics 2019-08-27 Shenglan Yuan , Jinqiao Duan

We present a new approach to fluctuation identities for reflected L\'{e}vy processes with one-sided jumps. This approach is based on a number of easy to understand observations and does not involve excursion theory or It\^{o} calculus. It…

Probability · Mathematics 2010-04-23 Jevgenijs Ivanovs

The concepts of scale invariance, self-similarity and scaling have been fruitfully applied to the study of price fluctuations in financial markets. After a brief review of the properties of stable Levy distributions and their applications…

Statistical Mechanics · Physics 2008-12-02 Rama Cont , Marc Potters , Jean-Philippe Bouchaud

We study a combination of the refracted and reflected L\'evy processes. Given a spectrally negative L\'evy process and two boundaries, it is reflected at the lower boundary while, whenever it is above the upper boundary, a linear drift at a…

Probability · Mathematics 2017-06-13 José-Luis Pérez , Kazutoshi Yamazaki

What is the analogue of L\'evy processes for random surfaces? Motivated by scaling limits of random planar maps in random geometry, we introduce and study L\'evy looptrees and L\'evy maps. They are defined using excursions of general L\'evy…

Probability · Mathematics 2025-07-15 Igor Kortchemski , Cyril Marzouk

We develop a scale-invariant truncated L\'evy (STL) process to describe physical systems characterized by correlated stochastic variables. The STL process exhibits L\'evy stability for the probability density, and hence shows scaling…

Statistical Mechanics · Physics 2009-10-31 Boris Podobnik , Plamen Ch. Ivanov , Youngki Lee , H. Eugene Stanley

In this paper, we solve exit problems for a level-dependent L\'evy process which is exponentially killed with a killing intensity that depends on the present state of the process. Moreover, we analyse the respective resolvents. All…

Probability · Mathematics 2025-03-11 Zbigniew Palmowski , Meral Şimşek , Apostolos D. Papaioannou

In this paper, we study fluctuation identities for spectrally negative L\'evy processes killed by a general class of additive functionals. We consider positive co-natural additive functionals (PcNAFs), which include as special cases both…

Probability · Mathematics 2026-04-23 Kei Noba , José-Luis Pérez

The scaling properties of oil price fluctuations are described as a non-stationary stochastic process realized by a time series of finite length. An original model is used to extract the scaling exponent of the fluctuation functions within…

Statistical Finance · Quantitative Finance 2008-12-02 M. Momeni , I. Kourakis , K. Talebi

We study the distribution of the area under the normalized excursion of a spectrally positive stable L{\'e}vy process L, as well as the area under its meander, and under L conditioned to stay positive. Our results involve a special case of…

Probability · Mathematics 2020-09-04 Christophe Profeta

Scale invariance usually occurs in extended systems where correlation functions decay algebraically in space and/or time. Here we introduce a new type of scale invariance, occurring in the distribution functions of physical observables. At…

Quantum Physics · Physics 2018-09-19 Emanuele G. Dalla Torre

In this paper we consider storage and inventory systems. Our aim is to apply and review main results of the fluctuation theory of stochastic processes in the context of storage and inventory modeling. We describe systems where the inflow is…

Probability · Mathematics 2013-04-16 Zbigniew Michna , Wojciech Bombała , Peter Nielsen

For spectrally negative L\'evy processes, we prove several fluctuation results involving a general draw-down time, which is a downward exit time from a dynamic level that depends on the running maximum of the process. In particular, we find…

Probability · Mathematics 2019-07-17 Bo Li , Nhat Linh Vu , Xiaowen Zhou

In this paper, we identify Laplace transforms of occupation times of intervals until first passage times for spectrally negative L\'evy processes. New analytical identities for scale functions are derived and therefore the results are…

Probability · Mathematics 2012-07-09 Ronnie L. Loeffen , Jean-François Renaud , Xiaowen Zhou

We introduce the scale calculus, which generalizes the classical differential calculus to non differentiable functions. The new derivative is called the scale difference operator. We also introduce the notions of fractal functions, minimal…

General Mathematics · Mathematics 2009-11-07 Jacky Cresson

Numerical solutions of differential equations are usually not smooth functions. However, they should resemble the smoothness of the corresponding real solutions in one way or another. In two of our recent papers, a kind of spacial…

Numerical Analysis · Mathematics 2012-07-13 Tong Sun

In this paper we solve the exit problems for (reflected) spectrally negative L\'evy processes, which are exponentially killed with a killing intensity dependent on the present state of the process and analyze respective resolvents. All…

Probability · Mathematics 2017-06-27 Bo Li , Zbigniew Palmowski

Recent fluctuation identities for $\alpha$-stable L\'evy processes have decomposed paths using generalised spherical polar coordinates revealing an underlying Markov Additive Process (MAP) for which a more advanced form of excursion theory…

Probability · Mathematics 2024-07-31 Andreas E. Kyprianou , Sonny Medina , Juan Carlos Pardo