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In this paper we investigate two numerical schemes for the simulation of stochastic Volterra equations driven by space--time L\'evy noise of pure-jump type. The first one is based on truncating the small jumps of the noise, while the second…

Probability · Mathematics 2016-01-19 Bohan Chen , Carsten Chong , Claudia Klüppelberg

We develop a Lagrangian approach to conservation-law anomalies in weak solutions of inviscid Burgers equation, motivated by previous work on the Kraichnan model of turbulent scalar advection. We show that the entropy solutions of Burgers…

Mathematical Physics · Physics 2017-10-06 Gregory L. Eyink , Theodore D. Drivas

It is known that the transition probabilities of a solution to a classical It\^o stochastic differential equation (SDE) satisfy in the weak sense the associated Kolmogorov equation. The Kolmogorov equation is a partial differential equation…

Probability · Mathematics 2010-06-24 Marjorie G. Hahn , Kei Kobayashi , Sabir Umarov

It is shown that under a certain condition on a semimartingale and a time-change, any stochastic integral driven by the time-changed semimartingale is a time-changed stochastic integral driven by the original semimartingale. As a direct…

Probability · Mathematics 2010-10-26 Kei Kobayashi

For a general Multidimensional L\'{e}vy process (satisfying some moment conditions), we introduce the Multidimensional power jump processes and the related Multidimensional Teugels martingales. Furthermore, we orthogonalize the…

Probability · Mathematics 2011-11-02 Jianzhong Lin

We study non-linear Backward Stochastic Differential Equations (BSDEs) driven by a Brownian motion and p default martingales. The driver of the BSDE with multiple default jumps can take a generalized form involving an optional finite…

Mathematical Finance · Quantitative Finance 2026-01-06 Miryana Grigorova , James Wheeldon

We prove the existence of the unique solution of a general Backward Stochastic Differential Equation with quadratic growth driven by martingales. Some kind of comparison theorem is also proved.

Probability · Mathematics 2008-06-02 Revaz Tevzadze

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 analyze two different confining mechanisms for L\'{e}vy flights in the presence of external potentials. One of them is due to a conservative force in the corresponding Langevin equation. Another is implemented by Levy-Schroedinger…

Statistical Mechanics · Physics 2015-05-13 Piotr Garbaczewski

We provide an exhaustive treatment of Linear-Quadratic control problems for a class of stochastic Volterra equations of convolution type, whose kernels are Laplace transforms of certain signed matrix measures which are not necessarily…

Optimization and Control · Mathematics 2020-11-30 Eduardo Abi Jaber , Enzo Miller , Huyên Pham

This paper introduces a backward stochastic differential equation driven by both Brownian motion and a Markov chain (BSDEBM). Regime-switching is also incorporated through its driver. The existence and uniqueness of the solution of the…

Probability · Mathematics 2022-03-08 Engel John C. Dela Vega , Robert J. Elliott

We provide a unified treatment of pathwise Large and Moderate deviations principles for a general class of multidimensional stochastic Volterra equations with singular kernels, not necessarily of convolution form. Our methodology is based…

Probability · Mathematics 2022-04-15 Antoine Jacquier , Alexandre Pannier

We prove an existence and uniqueness result for generalized backward doubly stochastic differential equations driven by L\'evy processes with non-Lipschitz assumptions.

Probability · Mathematics 2009-07-17 Auguste Aman , Jean Marc Owo

For a stochastic process $(X_t)_{t\geq 0}$ we establish conditions under which the inverse first-passage time problem has a solution for any random variable $\xi >0$. For Markov processes we give additional conditions under which the…

Probability · Mathematics 2023-05-19 Alexander Klump , Mladen Savov

In this note we prove an existence and uniqueness result for the solution of multidimensional stochastic delay differential equations with normal reflection. The equations are driven by a fractional Brownian motion with Hurst parameter…

Probability · Mathematics 2012-03-05 Mireia Besalú , Carles Rovira

In this paper we derive a Bismut-Elworthy-Li type formula with respect to strong solutions to singular stochastic differential equations (SDE's) with additive noise given by a multi-dimensional fractional Brownian motion with Hurst…

Probability · Mathematics 2018-05-30 Oussama Amine , Emmanuel Coffie , Fabian Harang , Frank Proske

The paper is concerned with the existence and uniqueness of a strong solution to a two-dimensional backward stochastic Navier-Stokes equation with nonlinear forcing, driven by a Brownian motion. We use the spectral approximation and the…

Probability · Mathematics 2011-05-02 Jinniao Qiu , Shanjian Tang , Yuncheng You

Our main result is the martingale representations for Markov additive processes where the modulator is a Levy process. These processes have three parts: the modulator, the jumps of the ordinate triggered by the modulator, and the…

Probability · Mathematics 2025-12-09 Celal Umut Yaran , Mine Çağlar

We address the optimal control of stochastic Volterra integral equations with delay through the lens of Hida-Malliavin calculus. We show that the corresponding adjoint processes satisfy an anticipated backward stochastic Volterra integral…

Probability · Mathematics 2026-04-20 Roméo Kouassi Konan , Auguste Aman

We revisit Merton's portfolio optimization problem under boun-ded state-dependent utility functions, in a market driven by a L\'evy process $Z$ extending results by Karatzas et. al. (1991) and Kunita (2003). The problem is solved using a…

Portfolio Management · Quantitative Finance 2009-01-15 Jose E. Figueroa-Lopez , Jin Ma