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We generalise multivariate subordination of L\'evy processes as introduced by Barndorff-Nielsen, Pedersen, and Sato to Hilbert space valued L\'evy processes. The processes are explicitly characterised and conditions for integrability and…

Probability · Mathematics 2018-09-07 Fred E. Benth , Paul Krühner

We prove that a square-integrable set-indexed stochastic process is a set-indexed Brownian motion if and only if its projection on all the strictly increasing continuous sequences are one-parameter $G$-time-changed Brownian motions. In…

Probability · Mathematics 2015-08-13 Arthur Yosef

We study a general non-homogeneous Skellam-type process with jumps of arbitrary fixed size. We express this process in terms of a linear combination of Poisson processes and study several properties, including the summation of independent…

Probability · Mathematics 2025-04-11 Fabrizio Cinque , Enzo Orsingher

Based on the concept of self-decomposability, we extend some recent multivariate L\'evy models built using multivariate subordination with the aim of capturing situations in which a sudden event in one market is propagated onto related…

Pricing of Securities · Quantitative Finance 2020-07-31 Matteo Gardini , Piergiacomo Sabino , Emanuela Sasso

In this paper we introduce a new class of state space models based on shot-noise simulation representations of non-Gaussian L\'evy-driven linear systems, represented as stochastic differential equations. In particular a conditionally…

Probability · Mathematics 2020-01-09 Simon Godsill , Marina Riabiz , Ioannis Kontoyiannis

We consider rough paths with jumps. In particular, the analogue of Lyons' extension theorem and rough integration are established in a jump setting, offering a pathwise view on stochastic integration against cadlag processes. A class of…

Probability · Mathematics 2014-12-01 Peter Friz , Atul Shekhar

We prove that the stochastic differential equation $$ Y_{s,t}(x) = Y_{s,s}(x) + \int_0^{t-s} f(Y_{s,s+u}(x)) dX_{s+u}, Y_{s,s}(x)=x\in\R^d. $$ driven by a L\'evy process whose paths have finite p-variation almost surely for some $p\in[1,2)$…

Probability · Mathematics 2007-05-23 David R. E. Williams

Ito's construction of Markovian solutions to stochastic equations driven by a L\'evy noise is extended to nonlinear distribution dependent integrands aiming at the effective construction of linear and nonlinear Markov semigroups and the…

Probability · Mathematics 2022-05-03 Vassili N. Kolokoltsov

In this article, we introduce Mittag-Leffler L\'evy process and provide two alternative representations of this process. First, in terms of Laplace transform of the marginal densities and next as a subordinated stochastic process. Both…

Probability · Mathematics 2016-02-05 Arun Kumar , N. S. Upadhye

Iksanov and Pilipenko (2023) defined a skew stable L\'{e}vy process as a scaling limit of a sequence of perturbed at $0$ symmetric stable L\'{e}vy processes (continuous-time processes). Here, we provide a simpler construction of the skew…

Probability · Mathematics 2023-07-12 Congzao Dong , Oleksandr Iksanov , Andrey Pilipenko

Levy processes, which have stationary independent increments, are ideal for modelling the various types of noise that can arise in communication channels. If a Levy process admits exponential moments, then there exists a parametric family…

Probability · Mathematics 2019-05-02 Dorje C. Brody , Lane P. Hughston , Xun Yang

In this paper we prove the Poisson Hypothesis for the limiting behavior of the large queueing systems in some simple ("mean-field") cases. We show in particular that the corresponding dynamical systems, defined by the non-linear Markov…

Mathematical Physics · Physics 2007-05-23 Alexander Rybko , Senya Shlosman

In this paper we consider storage and inventory systems. Our aim is to apply and review main results of the fluctuation theory of stochastic processes in the context of storage and inventory modeling. We describe systems where the inflow is…

Probability · Mathematics 2013-04-16 Zbigniew Michna , Wojciech Bombała , Peter Nielsen

This paper considers discretization of the L\'evy process appearing in the Lamperti representation of a strictly positive self-similar Markov process. Limit theorems for the resulting approximation are established under some regularity…

Probability · Mathematics 2020-06-17 Jevgenijs Ivanovs , Jakob D. Thøstesen

We provide asymptotic results and develop high frequency statistical procedures for time-changed L\'evy processes sampled at random instants. The sampling times are given by first hitting times of symmetric barriers whose distance with…

Probability · Mathematics 2010-07-20 Mathieu Rosenbaum , Peter Tankov

In this paper we study set-valued Volterra-type stochastic integrals driven by L\'{e}vy processes. Upon extending the classical definitions of set-valued stochastic integral functionals to convoluted integrals with square-integrable…

Probability · Mathematics 2024-12-04 Weixuan Xia

We consider a process $Z$ on the real line composed from a L\'evy process and its exponentially tilted version killed with arbitrary rates and give an expression for the joint law of $Z$ seen from its supremum, the supremum $\overline Z$…

Probability · Mathematics 2014-05-15 Sebastian Engelke , Jevgenijs Ivanovs

For a spectrally one-sided L\'{e}vy process, we extend various two-sided exit identities to the situation when the process is only observed at arrival epochs of an independent Poisson process. In addition, we consider exit problems of this…

Probability · Mathematics 2016-03-18 Hansjörg Albrecher , Jevgenijs Ivanovs , Xiaowen Zhou

We consider finite and infinite systems of particles on the real line and half-line evolving in continuous time. Hereby, the particles are driven by i.i.d. L\'{e}vy processes endowed with rank-dependent drift and diffusion coefficients. In…

Probability · Mathematics 2011-12-30 Mykhaylo Shkolnikov

This paper proves sharp bounds on the tails of the L\'evy exponent of an operator semistable law on $\mathbb R^d$. These bounds are then applied to explicitly compute the Hausdorff and packing dimensions of the range, graph, and other…

Probability · Mathematics 2018-06-15 Peter Kern , Mark M. Meerschaert , Yimin Xiao