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In this paper, we get some convergence rates in total variation distance in approximating discretized paths of L{\'e}vy driven stochastic differential equations, assuming that the driving process is locally stable. The particular case of…

Probability · Mathematics 2022-03-08 Emmanuelle Clément

We introduce a nonparametric approach for estimating drift and diffusion functions in systems of stochastic differential equations from observations of the state vector. Gaussian processes are used as flexible models for these functions and…

Data Analysis, Statistics and Probability · Physics 2018-08-15 Philipp Batz , Andreas Ruttor , Manfred Opper

We propose a parsimonious stochastic model for characterising the distributional and temporal properties of rainfall. The model is based on an integrated Ornstein-Uhlenbeck process driven by the Hougaard L\'evy process. We derive properties…

Methodology · Statistics 2015-01-27 Ragnhild C. Noven , Almut E. D. Veraart , Axel Gandy

We propose a new method for the estimation of a semiparametric tempered stable L\'{e}vy model. The estimation procedure combines iteratively an approximate semiparametric method of moment estimator, Truncated Realized Quadratic Variations…

Econometrics · Economics 2022-02-25 José E. Figueroa-López , Ruoting Gong , Yuchen Han

In this paper we present the asymptotic analysis of the realised quadratic variation for multivariate symmetric $\beta$-stable L\'evy processes, $\beta \in (0,2)$, and certain pure jump semimartingales. The main focus is on derivation of…

Probability · Mathematics 2021-05-07 Johannes Heiny , Mark Podolskij

We establish global Schauder estimates for integro-partial differential equations (IPDE) driven by a possibly degenerate L\'evy Ornstein-Uhlenbeck operator, both in the elliptic and parabolic setting, using some suitable anisotropic…

Analysis of PDEs · Mathematics 2020-10-15 Lorenzo Marino

In this paper we study general nonlinear stochastic differential equations, where the usual Brownian motion is replaced by a L\'evy process. We also suppose that the coefficient multiplying the increments of this process is merely Lipschitz…

Probability · Mathematics 2007-07-19 Benjamin Jourdain , Sylvie Méléard , Wojbor Woyczynski

In this paper, we study the nonparametric estimation of the density $f_\Delta$ of an increment of a L\'evy process $X$ based on $n$ observations with a sampling rate $\Delta$. The class of L\'evy processes considered is broad, including…

Statistics Theory · Mathematics 2024-11-04 Céline Duval , Taher Jalal , Ester Mariucci

We describe stochastic calculus in the context of processes that are driven by an adapted point process of locally finite intensity and are differentiable between jumps. This includes Markov chains as well as non-Markov processes. By…

Probability · Mathematics 2016-07-26 Eric Foxall

We introduce a new transportation distance between probability measures that is built from a L\'evy jump kernel. It is defined via a non-local variant of the Benamou-Brenier formula. We study geometric and topological properties of this…

Probability · Mathematics 2012-04-11 Matthias Erbar

Explicit coupling property and gradient estimates are investigated for the linear evolution equations on Hilbert spaces driven by an additive cylindrical L\'evy process. The results are efficiently applied to establish the exponential…

Probability · Mathematics 2015-01-27 Jian Wang

Calibrating a L\'evy process usually requires characterizing its jump distribution. Traditionally this problem can be solved with nonparametric estimation using the empirical characteristic functions (ECF), assuming certain regularity, and…

Machine Learning · Statistics 2019-09-30 Kailai Xu , Eric Darve

L\'evy-driven Ornstein-Uhlenbeck (OU) processes represent an intriguing class of stochastic processes that have garnered interest in the energy sector for their ability to capture typical features of market dynamics. However, in the current…

Computational Finance · Quantitative Finance 2026-05-07 Roberto Baviera , Pietro Manzoni

Under some mild assumptions on the Levy measure and the symbol we obtain gradient estimates of Dirichlet heat kernels for pure-jump isotropic unimodal Levy processes in $R^d$.

Probability · Mathematics 2016-05-06 Tadeusz Kulczycki , Michal Ryznar

Using key tools such as It\^o formula for general semi-martingales, moments estimates for L\'{e}vy-type stochastic integrals and properties of regular varying functions we find conditions under which solutions of stochastic differential…

Probability · Mathematics 2024-02-09 I. Orlovskyi , F. Proske , O. Tymoshenko

L\'evy processes, known for their ability to model complex dynamics with skewness, heavy tails and discontinuities, play a critical role in stochastic modeling across various domains. However, inference for most L\'evy processes, whether in…

Methodology · Statistics 2025-05-29 Bill Z. Lin , Simon Godsill

This paper explores the rates of convergence of solutions for multivariate stochastic differential equations (SDEs) driven by L\'evy processes within the small-time stable domain of attraction (DoA). Explicit bounds are derived for the…

Probability · Mathematics 2025-09-17 Jorge González Cázares , David Kramer-Bang

In this paper we develop a framework for estimating Probability of Default (PD) based on stochastic models governing an appropriate asset value processes. In particular, we build upon a L\'evy-driven Ornstein-Uhlenbeck process and consider…

Risk Management · Quantitative Finance 2023-09-25 Kyriakos Georgiou , Athanasios N. Yannacopoulos

We consider a general class of high order weak approximation schemes for stochastic differential equations driven by L\'evy processes with infinite activity. These schemes combine a compound Poisson approximation for the jump part of the…

Probability · Mathematics 2012-04-24 Arturo Kohatsu-Higa , Salvador Ortiz-Latorre , Peter Tankov

We propose moment-based variational inference as a flexible framework for approximate smoothing of latent Markov jump processes. The main ingredient of our approach is to partition the set of all transitions of the latent process into…

Machine Learning · Computer Science 2019-05-15 Christian Wildner , Heinz Koeppl
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