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We consider a stochastically continuous, affine Markov process in the sense of Duffie, Filipovic and Schachermayer, with cadlag paths, on a general state space D, i.e. an arbitrary Borel subset of R^d. We show that such a process is always…

Probability · Mathematics 2012-05-23 Martin Keller-Ressel , Walter Schachermayer , Josef Teichmann

We show that stochastically continuous, time-homogeneous affine processes on the canonical state space $\Rplus^m \times \RR^n$ are always regular. In the paper of \citet{Duffie2003} regularity was used as a crucial basic assumption. It was…

Probability · Mathematics 2010-02-12 Martin Keller-Ressel , Walter Schachermayer , Josef Teichmann

This thesis is devoted to the study of affine processes and their applications in financial mathematics. In the first part we consider the theory of time-inhomogeneous affine processes on general state spaces. We present a concise setup for…

Pricing of Securities · Quantitative Finance 2015-12-11 Stefan Waldenberger

In this paper we study time-inhomogeneous affine processes beyond the common assumption of stochastic continuity. In this setting times of jumps can be both inaccessible and predictable. To this end we develop a general theory of finite…

Probability · Mathematics 2018-12-21 Martin Keller-Ressel , Thorsten Schmidt , Robert Wardenga

In affine models, both the martingale property of stochastic exponentials and non-explosion of affine processes is characterized in terms of minimality of solutions to a system of generalized Riccati differential equations. This is the…

Probability · Mathematics 2016-09-12 Eberhard Mayerhofer

We consider local martingales which are standard or stochastic exponentials M of one component X of a multivariate affine process in the sense of Duffie, Filipovic and Schachermayer (2003). By completing their characterization of…

Probability · Mathematics 2011-05-06 Eberhard Mayerhofer , Johannes Muhle-Karbe , Alexander G. Smirnov

We revisit affine diffusion processes on general and on the canonical state space in particular. A detailed study of theoretic and applied aspects of this class of Markov processes is given. In particular, we derive admissibility conditions…

Probability · Mathematics 2009-10-10 Damir Filipovic , Eberhard Mayerhofer

We study Markov-modulated affine processes (abbreviated MMAPs), a class of Markov processes that are created from affine processes by allowing some of their coefficients to be a function of an exogenous Markov process. MMAPs allow for…

Probability · Mathematics 2022-09-13 Kevin Kurt , Rüdiger Frey

This article provides the mathematical foundation for stochastically continuous affine processes on the cone of positive semidefinite symmetric matrices. This analysis has been motivated by a large and growing use of matrix-valued affine…

Probability · Mathematics 2011-04-12 Christa Cuchiero , Damir Filipović , Eberhard Mayerhofer , Josef Teichmann

We prove that if we are given a generator of a cadlag Markov process and an open domain $G$ in the state space, on which the generator has the local property expressed in a suitable way on a class $\mathcal{C}$ of test functions that is…

Probability · Mathematics 2022-08-15 Lucian Beznea , Iulian Cîmpean , Michael Röckner

Based on the theory of multivariate time changes for Markov processes, we show how to identify affine processes as solutions of certain time change equations. The result is a strong version of a theorem presented by J. Kallsen (2006) which…

Probability · Mathematics 2014-12-30 Nicoletta Gabrielli , Josef Teichmann

A general affine Markov semigroup is formulated as the convolution of a homogeneous one with a skew convolution semigroup. We provide some sufficient conditions for the regularities of the homogeneous affine semigroup and the skew…

Probability · Mathematics 2007-06-13 D. A. Dawson , Zenghu Li

We introduce affine Volterra processes, defined as solutions of certain stochastic convolution equations with affine coefficients. Classical affine diffusions constitute a special case, but affine Volterra processes are neither…

Probability · Mathematics 2019-10-23 Eduardo Abi Jaber , Martin Larsson , Sergio Pulido

We use the abstract method of (local) martingale problems in order to give criteria for convergence of stochastic processes. Extending previous notions, the formulation we use is neither restricted to Markov processes (or semimartingales),…

Probability · Mathematics 2021-08-27 David Criens , Peter Pfaffelhuber , Thorsten Schmidt

This paper is devoted to parameter estimation for partially observed polynomial state space models. This class includes discretely observed affine or more generally polynomial Markov processes. The polynomial structure allows for the…

Statistics Theory · Mathematics 2025-07-11 Jan Kallsen , Ivo Richert

We consider affine Markov processes taking values in convex cones. In particular, we characterize all affine processes taking values in an irreducible symmetric cone in terms of certain L\'evy-Khintchine triplets. This is the complete…

Probability · Mathematics 2011-12-07 Christa Cuchiero , Martin Keller-Ressel , Eberhard Mayerhofer , Josef Teichmann

It is known that, in general, an affine or Gabor AP-frame is an $L^2(\mathbb{R})$-frame and conversely. In part as a consequence of the Ergodic Theorem, we prove a necessary and sufficient condition for an affine (wavelet) system…

Probability · Mathematics 2026-05-19 Hernán Diego Centeno , Juan Miguel Medina

Generalized Feller theory provides an important analog to Feller theory beyond locally compact state spaces. This is very useful for solutions of certain stochastic partial differential equations, Markovian lifts of fractional processes, or…

Probability · Mathematics 2023-08-09 Christa Cuchiero , Tonio Möllmann , Josef Teichmann

The theory of affine processes on the space of positive semidefinite d x d matrices has been established in a joint work with Cuchiero, Filipovi\'c and Teichmann (2011). We confirm the conjecture stated therein that in dimension d greater…

Probability · Mathematics 2013-01-15 Eberhard Mayerhofer

We consider a general multidimensional affine recursion with corresponding Markov operator $P$ and a unique $P$-stationary measure. We show spectral gap properties on H\"older spaces for the corresponding Fourier operators and we deduce…

Probability · Mathematics 2013-05-13 Zhiqiang Gao , Yves Guivarc'h , Emile Le Page
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