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Modelling extreme events and heavy-tailed phenomena is central to building reliable predictive systems in domains such as finance, climate science, and safety-critical AI. While L\'evy processes provide a natural mathematical framework for…

Machine Learning · Computer Science 2026-05-12 Yaman Kindap , Manfred Opper , Benjamin Dupuis , Umut Simsekli , Tolga Birdal

This article investigates the least squares estimators (LSE) for the unknown parameters in stochastic differential equations (SDEs) that are affected by L\'evy noise, particularly when the sample paths are sparse. Specifically, given $n$…

Methodology · Statistics 2026-01-01 Brijesh Kumar Jha , Subhra Sankar Dhar , Akash Ashirbad Panda

In this paper we present a parametric estimation method for certain multi-parameter heavy-tailed L\'evy-driven moving averages. The theory relies on recent multivariate central limit theorems obtained in [3] via Malliavin calculus on…

Statistics Theory · Mathematics 2021-04-20 Mathias Mørck Ljungdahl , Mark Podolskij

We consider a defaultable asset whose risk-neutral pricing dynamics are described by an exponential Levy-type martingale subject to default. This class of models allows for local volatility, local default intensity, and a locally dependent…

Probability · Mathematics 2013-12-30 Matthew Lorig , Stefano Pagliarani , Andrea Pascucci

In this paper we consider two processes driven by diffusions and jumps. The jump components are Levy processes and they can both have finite activity and infinite activity. Given discrete observations we estimate the covariation between the…

Probability · Mathematics 2009-11-13 Fabio Gobbi , Cecilia Mancini

We consider a general d-dimensional Levy-type process with killing. Combining the classical Dyson series approach with a novel polynomial expansion of the generator A(t) of the Levy-type process, we derive a family of asymptotic…

Computational Finance · Quantitative Finance 2014-12-01 Matthew Lorig , Stefano Pagliarani , Andrea Pascucci

Motivated by the construction of the It\^o stochastic integral, we consider a step function method to discretize and simulate volatility modulated L\'evy semistationary processes. Moreover, we assess the accuracy of the method with a…

Applications · Statistics 2014-07-11 Mikkel Bennedsen , Asger Lunde , Mikko S. Pakkanen

We introduce a new approach for estimating the invariant density of a multidimensional diffusion when dealing with high-frequency observations blurred by independent noises. We consider the intermediate regime, where observations occur at…

Statistics Theory · Mathematics 2024-04-19 Raphaël Maillet , Grégoire Szymanski

We investigate the nonparametric estimation problem of the density $\pi$, representing the stationary distribution of a two-dimensional system $\left(Z_t\right)_{t \in[0, T]}=\left(X_t, \lambda_t\right)_{t \in[0, T]}$. In this system, $X$…

Statistics Theory · Mathematics 2025-10-01 Chiara Amorino , Charlotte Dion-Blanc , Arnaud Gloter , Sarah Lemler

This paper gives examples of explicit arbitrage-free term structure models with L\'evy jumps via state price density approach. By generalizing quadratic Gaussian models, it is found that the probability density function of a L\'evy process…

Probability · Mathematics 2008-12-10 Jirô Akahori , Takahiro Tsuchiya

In this paper, we consider a piecewise deterministic Markov process (PDMP), with known flow and deterministic transition measure, and unknown jump rate $\lambda$. To estimate nonparametrically the jump rate, we first construct an adaptive…

Statistics Theory · Mathematics 2020-12-09 Nathalie Krell , Emeline Schmisser

The paper considers so-called adaptive estimations of regression, distribution density and spectral density of a Gaussian stationary sequence, asymptotically optimal in order at a growing number of observation on any regular subspace…

Probability · Mathematics 2007-05-23 Eugene Ostrovsky , Leonid Sirota

This work aims at making a comprehensive contribution in the general area of parametric inference for discretely observed diffusion processes. Established approaches for likelihood-based estimation invoke a time-discretisation scheme for…

Methodology · Statistics 2024-01-30 Yuga Iguchi , Alexandros Beskos , Matthew M. Graham

We investigate the stationary diffusion equation with a coefficient given by a (transformed) L\'evy random field. L\'evy random fields are constructed by smoothing L\'evy noise fields with kernels from the Mat\'ern class. We show that…

Analysis of PDEs · Mathematics 2021-11-19 Oliver G. Ernst , Hanno Gottschalk , Thomas Kalmes , Toni Kowalewitz , Marco Reese

The problem of the construction of strong approximations with a given order of convergence for jump-diffusion equations is studied. General approximation schemes are constructed for L\'evy type stochastic differential equation. In…

Probability · Mathematics 2015-12-22 Michał Barski

We establish the exponential convergence with respect to the $L^1$-Wasserstein distance and the total variation for the semigroup corresponding to the stochastic differential equation (SDE) $$d X_t=d Z_t+b(X_t)\,d t,$$ where $(Z_t)_{t\ge0}$…

Probability · Mathematics 2018-05-14 Dejun Luo , Jian Wang

We construct intrinsic on-and off-diagonal upper and lower estimates for the transition probability density of a L\'evy process in small time. By intrinsic we mean that such estimates reflect the structure of the characteristic exponent of…

Probability · Mathematics 2013-08-09 Victoria Knopova , Alexei Kulik

This paper investigates the large sample properties of local regression distribution estimators, which include a class of boundary adaptive density estimators as a prime example. First, we establish a pointwise Gaussian large sample…

Econometrics · Economics 2021-01-29 Matias D. Cattaneo , Michael Jansson , Xinwei Ma

We study the nonparametric estimation for the intensity of Poisson random measure in jump-diffusion CIR model based on the low frequency observations. This is given in terms of the minimization of norms on a nonempty, closed and convex…

Statistics Theory · Mathematics 2016-03-10 Wei Xu

Given a sample from a discretely observed compound Poisson process, we consider non-parametric estimation of the density $f_0$ of its jump sizes, as well as of its intensity $\lambda_0.$ We take a Bayesian approach to the problem and…

Statistics Theory · Mathematics 2023-02-27 Shota Gugushvili , Frank van der Meulen , Peter Spreij