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These lectures notes aim at introducing L\'{e}vy processes in an informal and intuitive way, accessible to non-specialists in the field. In the first part, we focus on the theory of L\'{e}vy processes. We analyze a `toy' example of a…

Pricing of Securities · Quantitative Finance 2008-12-02 Antonis Papapantoleon

We prove that a set-indexed process is a set-indexed fractional Brownian motion if and only if its projections on all the increasing paths are one-parameter time changed fractional Brownian motions. As an application, we present an integral…

Probability · Mathematics 2007-05-23 Erick Herbin , Ely Merzbach

In this paper, we derive comparison results for terminal values of $d$-dimensional special semimartingales and also for finite-dimensional distributions of multivariate L\'{e}vy processes. The comparison is with respect to nondecreasing,…

Probability · Mathematics 2016-08-14 Jan Bergenthum , Ludger Rüschendorf

For a general free L\'evy process, we prove the existence of its higher variation processes as limits in distribution, and identify the limits in terms of the L\'evy-It\^o representation of the original process. For a general free compound…

Operator Algebras · Mathematics 2023-04-07 Michael Anshelevich , Zhichao Wang

We define two new classes of stochastic processes, called tempered fractional L\'{e}vy process of the first and second kinds (TFLP and TFLP $I\!I$, respectively). TFLP and TFLP $I\!I$ make up very broad finite-variance, generally…

Probability · Mathematics 2019-10-03 Benjamin Cooper Boniece , Gustavo Didier , Farzad Sabzikar

In this article, we define the new concept of local coupling property for Markov processes and study its relationship with distributional properties of the transition probability. In the special case of L\'evy processes we show that this…

Probability · Mathematics 2018-02-28 Kasra Alishahi , Erfan Salavati

This paper aims at semi-parametrically estimating the input process to a L\'evy-driven queue by sampling the workload process at Poisson times. We construct a method-of-moments based estimator for the L\'evy process' characteristic…

Probability · Mathematics 2019-01-31 Liron Ravner , Onno Boxma , Michel Mandjes

A dynamical model based on a continuous addition of colored shot noises is presented. The resulting process is colored and non-Gaussian. A general expression for the characteristic function of the process is obtained, which, after a scaling…

Statistical Mechanics · Physics 2009-10-31 Jaume Masoliver , Miquel Montero , Alan McKane

This article deals with IDT processes, i.e. processes which are infinitely divisible with respect to time. Given an IDT process $(X_{t},\,t\geq0)$, there exists a unique (in law) L\'evy process $(L_{t}; t\geq0)$ which has the same…

Probability · Mathematics 2014-11-20 Antoine Hakassou , Youssef Ouknine

We introduce a general distributional framework that results in a unifying description and characterization of a rich variety of continuous-time stochastic processes. The cornerstone of our approach is an innovation model that is driven by…

Information Theory · Computer Science 2015-03-19 Michael Unser , Pouya D. Tafti , Qiyu Sun

Let {X_{t_1,t_2}: t_1,t_2 >= 0} be a two-parameter L\'evy process on R^d. We study basic properties of the one-parameter process {X_{x(t),y(t)}: t \in T} where x and y are, respectively, nondecreasing and nonincreasing nonnegative…

Probability · Mathematics 2010-01-08 Shai Covo

Let $\{L(t),t\geq 0\}$ be a L\'{e}vy process with representative random variable $L(1)$ defined by the infinitely divisible logarithmic series distribution. We study here the transition probability and L\'{e}vy measure of this process. We…

Probability · Mathematics 2019-12-18 Penka Mayster , Assen Tchorbadjieff

We are interested in the increment stationarity property for $L^2$-indexed stochastic processes, which is a fairly general concern since many random fields can be interpreted as the restriction of a more generally defined $L^2$-indexed…

Probability · Mathematics 2015-11-20 Alexandre Richard

We introduce Ising-H\"usler-Reiss processes, a new class of multivariate L\'evy processes that allows for sparse modeling of the path-wise conditional independence structure between marginal stable processes with different stability…

Methodology · Statistics 2026-01-13 Florian Brück , Sebastian Engelke , Stanislav Volgushev

In the paper we consider some piecewise deterministic Markov process whose continuous component evolves according to semiflows, which are switched at the jump times of a Poisson process. The associated Markov chain describes the states of…

Probability · Mathematics 2023-10-06 Dawid Czapla , Sander C. Hille , Katarzyna Horbacz , Hanna Wojewódka-Ściążko

We introduce a family of Markov processes on set partitions with a bounded number of blocks, called Lipschitz partition processes. We construct these processes explicitly by a Poisson point process on the space of Lipschitz continuous maps…

Statistics Theory · Mathematics 2015-06-05 Harry Crane

We construct a general stochastic process and prove weak convergence results. It is scaled in space and through the parameters of its distribution. We show that our simplified scaling is equivalent to time scaling used frequently. The…

Probability · Mathematics 2011-07-01 Mine Caglar

This paper is concerned with asymptotic behavior (at zero and at infinity) of the favorite points of L\'evy processes. By exploring Molchan's idea for deriving lower tail probabilities of Gaussian processes with stationary increments, we…

Probability · Mathematics 2018-08-09 Bo Li , Yimin Xiao , Xiaochuan Yang

We define a new type of self-similarity for one-parameter families of stochastic processes, which applies to a number of important families of processes that are not self-similar in the conventional sense. This includes a new class of…

Statistics Theory · Mathematics 2010-09-02 Bent Jørgensen , J. Raúl Martínez , Clarice G. B. Demétrio

The law of a positive infinitely divisible process with no drift is characterized by its L\'evy measure on the paths space. Based on recent results of the two authors, it is shown that even for simple examples of such processes, the…

Probability · Mathematics 2022-02-09 Nathalie Eisenbaum , Jan Rosiński