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We study the large-time asymptotic of renewal-reward processes with a heavy-tailed waiting time distribution. It is known that the heavy tail of the distribution produces an extremely slow dynamics, resulting in a singular large deviation…

Mathematical Physics · Physics 2022-01-05 Hiroshi Horii , Raphael Lefevere , Takahiro Nemoto

This note presents an operational measure of fat-tailedness for univariate probability distributions, in $[0,1]$ where 0 is maximally thin-tailed (Gaussian) and 1 is maximally fat-tailed. Among others,1) it helps assess the sample size…

Methodology · Statistics 2019-04-30 Nassim Nicholas Taleb

The standard Levy walk is performed by a particle that moves ballistically between randomly occurring collisions, when the intercollision time is a random variable governed by a power-law distribution. During instantaneous collision events…

Statistical Mechanics · Physics 2012-04-03 S. Denisov , V. Zaburdaev , P. Hanggi

A fluctuation theory and, in particular, a theory of scale functions is developed for upwards skip-free L\'evy chains, i.e. for right-continuous random walks embedded into continuous time as compound Poisson processes. This is done by…

Probability · Mathematics 2015-05-19 Matija Vidmar

We analyze annual revenues and earnings data for the 500 largest-revenue U.S. companies during the period 1954-2007. We find that mean year profits are proportional to mean year revenues, exception made for few anomalous years, from which…

General Finance · Quantitative Finance 2009-11-13 H. E. Roman , R. A. Siliprandi , C. Dose , C. Riccardi , M. Porto

In an effort to understand the fundamental physics of turbulent transport of particles and heat in a tokamak, the floating potential fluctuations in the the scrape-off layer plasma of ohmically heated ADITYA tokamak are analysed for…

Plasma Physics · Physics 2007-05-23 R. Jha , P. K. Kaw , D. R. Kulkarni , J. C. Parikh , ADITYA Team

Expectile, as the minimizer of an asymmetric quadratic loss function, is a coherent risk measure and is helpful to use more information about the distribution of the considered risk. In this paper, we propose a new risk measure by replacing…

Methodology · Statistics 2023-10-31 Qian Xiong , Zuoxiang Peng

This paper considers magnitude, asymptotics and duration of drawdowns for some L\'{e}vy processes. First, we revisit some existing results on the magnitude of drawdowns for spectrally negative L\'{e}vy processes using an approximation…

Mathematical Finance · Quantitative Finance 2016-10-03 David Landriault , Bin Li , Hongzhong Zhang

The characteristic measure of excursions away from a regular point is studied for a class of symmetric L\'evy processes without Gaussian part. It is proved that the harmonic transform of the killed process enjoys Feller property. The result…

Probability · Mathematics 2009-09-01 Kouji Yano

Recent work across many machine learning disciplines has highlighted that standard descent methods, even without explicit regularization, do not merely minimize the training error, but also exhibit an implicit bias. This bias is typically…

Machine Learning · Computer Science 2020-06-22 Ziwei Ji , Miroslav Dudík , Robert E. Schapire , Matus Telgarsky

Recent work on random growth models with light-tailed Markov-modulated additive shocks has shown that irreducible modulation yields tail behavior resembling an exponential distribution. We show that with reducible modulation the tail…

Probability · Mathematics 2026-05-07 Brendan K. Beare , Alexis Akira Toda

We use the theory of Bernstein functions to analyze power law tail behavior with log-periodic perturbations which corresponds to self-similarity of the Bernstein functions. Such tail behavior appears in the context of semistable L\'evy…

Probability · Mathematics 2023-12-22 Peter Kern , Svenja Lage

We show that the anomalous diffusion equations with a fractional derivative in the Caputo or Riesz sense are strictly related to the special convolution properties of the L\'evy stable distributions which stem from the evolution properties…

Statistical Mechanics · Physics 2017-03-03 K. Górska , A. Horzela , K. A. Penson , G. Dattoli , G. H. E. Duchamp

Continuous time random walks and Langevin equations are two classes of stochastic models for describing the dynamics of particles in the natural world. While some of the processes can be conveniently characterized by both of them, more…

Statistical Mechanics · Physics 2019-01-28 Xudong Wang , Yao Chen , Weihua Deng

Consider a sequence of i.i.d. random Lipschitz functions $\{\Psi_n\}_{n \geq 0}$. Using this sequence we can define a Markov chain via the recursive formula $R_{n+1} = \Psi_{n+1}(R_n)$. It is a well known fact that under some mild moment…

Probability · Mathematics 2015-04-21 Piotr Dyszewski

A wide range of natural and social phenomena result in observables whose distributions can be well approximated by a power-law decay. The well-known Hill estimator of the tail exponent provides results which are in many respects superior to…

Data Analysis, Statistics and Probability · Physics 2009-05-20 Éva Rácz , János Kertész , Zoltán Eisler

This survey aims to review two decades of progress on exponential functionals of (possibly killed) real-valued L\'evy processes. Since the publication of the seminal survey by Bertoin and Yor, substantial advances have been made in…

Probability · Mathematics 2026-05-29 Martin Minchev , Mladen Savov

Recently, the complete left tail asymptotic for the density of the {\it martingale limit} of the classical Galton-Watson process has been derived. The derivation is based on the properties of a special function (whose inverse Fourier…

Probability · Mathematics 2025-06-24 Anton A Kutsenko

We obtain an asymptotic expansion for the tails of the random variable $\tcal=\arg\max_{u\in\mathbb{R}}(\mathcal{A}_2(u)-u^2)$ where $\mathcal{A}_2$ is the Airy$_2$ process. Using the formula of Schehr \cite{Sch} that connects the density…

Mathematical Physics · Physics 2015-06-12 Thomas Bothner , Karl Liechty

The purpose of this paper is to adapt the empirical characteristic function (ECF) method to stable, but possibly not inverse stable linear stochastic system driven by the increments of a Levy-process. A remarkable property of the ECF method…

Methodology · Statistics 2014-01-07 L. Gerencser , M. Manfay
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