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We verify the Edgeworth expansion of any order for the integrated ergodic Levy driven Ornstein-Uhlenbeck process, applying a Malliavin calculus with truncation over the Wiener-Poisson space. Due to the special structure of the model, the…

Probability · Mathematics 2013-04-10 Hiroki Masuda , Nakahiro Yoshida

The linear fractional stable motion generalizes two prominent classes of stochastic processes, namely stable L\'evy processes, and fractional Brownian motion. For this reason it may be regarded as a basic building block for continuous time…

Statistics Theory · Mathematics 2022-08-17 Fabian Mies , Mark Podolskij

In a series of recent papers Barndorff-Nielsen and Shephard introduce an attractive class of continuous time stochastic volatility models for financial assets where the volatility processes are functions of positive Ornstein-Uhlenbeck(OU)…

Statistics Theory · Mathematics 2008-12-10 Lancelot F. James

We solve a physically significant extension of a classic problem in the theory of diffusion, namely the Ornstein-Uhlenbeck process [G. E. Ornstein and L. S. Uhlenbeck, Phys. Rev. 36, 823, (1930)]. Our generalised Ornstein-Uhlenbeck systems…

Statistical Mechanics · Physics 2009-11-11 V. Bezuglyy , B. Mehlig , M. Wilkinson , K. Nakamura , E. Arvedson

In this paper, we consider an inference problem for an Ornstein-Uhlenbeck process driven by a general one-dimensional centered Gaussian process $(G_t)_{t\ge 0}$. The second order mixed partial derivative of the covariance function $ R(t,\,…

Probability · Mathematics 2020-02-25 Yong Chen , Hongjuan Zhou

Tempered fractional Brownian motion is revisited from the viewpoint of reduced fractional Ornstein-Uhlenbeck process. Many of the basic properties of the tempered fractional Brownian motion can be shown to be direct consequences or…

Probability · Mathematics 2019-07-23 S. C. Lim , Chai Hok Eab

The collective motion of self-driven agents is a phenomenon of great interest in interacting particle systems. In this paper, we develop and analyze a model of agent motion in one dimension with periodic boundaries using a stochastic…

Dynamical Systems · Mathematics 2023-03-28 Matthias Ehrhardt , Thomas Kruse , Antoine Tordeux

This paper proposes a simple mathematical model of non-stationary and non-linear stochastic dynamics, which approximates a (globally) non-stationary and non-linear stochastic process by its locally (or \emph{"piecewise"}) stationary…

The indefinite integral of the homogenized Ornstein-Uhlenbeck process is a well-known model for physical Brownian motion, modelling the behaviour of an object subject to random impulses [L. S. Ornstein, G. E. Uhlenbeck: On the theory of…

Probability · Mathematics 2013-02-12 Peter Friz , Paul Gassiat , Terry Lyons

We consider high-frequency sampled continuous-time autoregressive moving average (CARMA) models driven by finite-variance zero-mean L\'evy processes. An L^2-consistent estimator for the increments of the driving L\'evy process without order…

Probability · Mathematics 2013-02-01 Vincenzo Ferrazzano , Florian Fuchs

We consider the statistical motion of a convex rigid body in a gas of N smaller (spherical) atoms close to thermodynamic equilibrium. Because the rigid body is much bigger and heavier, it undergoes a lot of collisions leading to small…

Analysis of PDEs · Mathematics 2018-07-04 Thierry Bodineau , Isabelle Gallagher , Laure Saint-Raymond

In this paper we study differential operators of the form \begin{align*} \left[\mathcal{L}_\infty v \right](x) = A\triangle v(x) + \left\langle Sx,\nabla v(x) \right\rangle - Bv(x), \,x \in \mathbb{R}^d, \,d \geqslant 2, \end{align*} for…

Analysis of PDEs · Mathematics 2015-10-06 Denny Otten

We study the least squares estimator for the drift parameter of the Langevin stochastic equation driven by the Rosenblatt process. Using the techniques of the Malliavin calculus and the stochastic integration with respect to the Rosenblatt…

Probability · Mathematics 2019-03-07 Radomyra Shevchenko , Ciprian A. Tudor

We introduce an extended version of the fractional Ornstein-Uhlenbeck (FOU) process where the integrand is replaced by the exponential of an independent L\'evy process. We call the process the generalized fractional Ornstein-Uhlenbeck…

Probability · Mathematics 2008-07-15 Kotaro Endo , Muneya Matsui

We consider the rates of relaxation of a particle in a harmonic well, subject to L\'evy noise characterized by its L\'evy index $\mu$. Using the propagator for this L\'evy Ornstein-Uhlenbeck process (LOUP), we show that the eigenvalue…

Statistical Mechanics · Physics 2015-06-19 Deepika Janakiraman , K. L. Sebastian

This paper proves that, under a monotonicity condition, the invariant probability measure of a McKean--Vlasov process can be approximated by weighted empirical measures of some processes including itself. These processes are described by…

Probability · Mathematics 2021-12-30 Kai Du , Yifan Jiang , Jinfeng Li

We obtain strong consistency and asymptotic normality of a least squares estimator of the drift coefficient for complex-valued Ornstein-Uhlenbeck processes disturbed by fractional noise, extending the result of Y. Hu and D. Nualart,…

Probability · Mathematics 2017-01-27 Yong Chen , Yaozhong Hu , Zhi Wang

We develop generic and efficient importance sampling estimators for Monte Carlo evaluation of prices of single- and multi-asset European and path-dependent options in asset price models driven by L\'evy processes, extending earlier works…

Risk Management · Quantitative Finance 2016-08-17 Adrien Genin , Peter Tankov

The use of an Ornstein-Uhlenbeck (OU) process is ubiquitous in business, economics and finance to capture various price processes and evolution of economic indicators exhibiting mean-reverting properties. When structural changes happen,…

Methodology · Statistics 2017-05-30 Fuqi Chen , Rogemar Mamon , Matt Davison

The correlated stochastic volatility models constitute a natural extension of the Black and Scholes-Merton framework: here the volatility is not a constant, but a stochastic process correlated with the price log-return one. At present,…

Statistical Finance · Quantitative Finance 2008-12-02 E. Cisana , L. Fermi , G. Montagna , O. Nicrosini