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Consider the problem to explicitly calculate the law of the first passage time T(a) of a general Levy process Z above a positive level a. In this paper it is shown that the law of T(a) can be approximated arbitrarily closely by the laws of…

Probability · Mathematics 2007-05-23 M. R. Pistorius

The Wiener--Hopf factorisation of a L\'evy or Markov additive process describes the way that it attains new maxima and minima in terms of a pair of so-called ladder height processes. Vigon's theory of friendship for L\'evy processes…

Probability · Mathematics 2024-10-15 Leif Döring , Lukas Trottner , Alexander R. Watson

We study the spectral expansion of the semigroup of a general stable process killed on the first exit from the positive half-line. Starting with the Wiener-Hopf factorization we obtain the q-resolvent density for the killed process, from…

Probability · Mathematics 2018-01-03 Alexey Kuznetsov , Mateusz Kwasnicki

In this paper we obtain a Wiener-Hopf type factorization for a real-valued arithmetic Brownian motion with time-dependent drift and volatility. To the best of our knowledge, this paper is the very first step towards realizing the objective…

Probability · Mathematics 2022-08-03 Tomasz R. Bielecki , Ziteng Cheng , Ruoting Gong

We define an almost periodic extension of the Wiener algebras in the quaternionic setting and prove a Wiener-Levy type theorem for it, as well as extending the theorem to the matrix-valued case. We prove a Wiener-Hopf factorization theorem…

Complex Variables · Mathematics 2016-12-23 Yonatan Shelah

This paper considers the valuation of exotic path-dependent options in L\'evy models, in particular options on the supremum and the infimum of the asset price process. Using the Wiener--Hopf factorization, we derive expressions for the…

Pricing of Securities · Quantitative Finance 2011-05-03 Ernst Eberlein , Kathrin Glau , Antonis Papapantoleon

This note provides a factorization of a L\'evy pocess over a phase-type horizon $\tau$ given the phase at the supremum, thereby extending the Wiener-Hopf factorization for $\tau$ exponential. One of the factors is defined using time…

Probability · Mathematics 2018-08-14 Søren Asmussen , Jevgenijs Ivanovs

In our previous publications (IJTAF 2019, Math. Finance 2020), we introduced a general class of SINH-regular processes and demonstrated that efficient numerical methods for the evaluation of the Wiener-Hopf factors and various probability…

Probability · Mathematics 2022-07-07 Svetlana Boyarchenko , Sergei Levendorskiĭ

We consider a stochastic process driven by a diffusion and jumps. We devise a technique, which is based on a discrete record of observations, for identifying the times when jumps larger than a suitably defined threshold occurred. The…

Statistics Theory · Mathematics 2007-06-13 Cecilia Mancini

With a view to computing fluctuation identities related to stable processes, we review and extend the class of hypergeometric L\'evy processes explored in Kuznetsov and Pardo (arXiv:1012.0817). We give the Wiener-Hopf factorisation of a…

Probability · Mathematics 2021-01-22 A. E. Kyprianou , J. C. Pardo , A. R. Watson

Kuznetsov et al. (2011) and Kuznetsov and Pardo (2013) introduced the family of Hypergeometric L\'evy processes. They appear naturally in the study of fluctuations of stable processes when one analyses stable processes through the theory of…

Probability · Mathematics 2015-09-09 Emma L. Horton , Andreas E. Kyprianou

We prove the Wiener-Hopf factorization for Markov Additive processes. We derive also Spitzer-Rogozin theorem for this class of processes which serves for obtaining Kendall's formula and Fristedt representation of the cumulant matrix of the…

Probability · Mathematics 2011-10-19 Przemyslaw Klusik , Zbigniew Palmowski

We consider a pair of coupled queues driven by independent spectrally-positive Levy processes. With respect to the bi-variate workload process this framework includes both the coupled processor model and the two-server fluid network with…

Probability · Mathematics 2013-06-11 Onno Boxma , Jevgenijs Ivanovs

We show that the jumps correlation matrix of a multivariate Hawkes process is related to the Hawkes kernel matrix through a system of Wiener-Hopf integral equations. A Wiener-Hopf argument allows one to prove that this system (in which the…

Methodology · Statistics 2015-02-16 Emmanuel Bacry , Jean-Francois Muzy

In this paper we introduce a new class of L\'evy processes which we call hypergeometric-stable L\'evy processes, because they are obtained from symmetric stable processes through several transformations and where the Gauss hypergeometric…

Probability · Mathematics 2009-11-05 M. E. Caballero , J. C. Pardo , J. L. Perez

A new approach to solve the continuous-time stochastic inventory problem using the fluctuation theory of Levy processes is developed. This approach involves the recent developments of the scale function that is capable of expressing many…

Optimization and Control · Mathematics 2016-03-25 Kazutoshi Yamazaki

We obtain series expansions of the $q$-scale functions of arbitrary spectrally negative L\'evy processes, including processes with infinite jump activity, and use these to derive various new examples of explicit $q$-scale functions.…

Probability · Mathematics 2022-03-08 Anita Behme , David Oechsler , René L. Schilling

For a refracted spectrally negative Levy process, we find some new and fantastic formulas for its q-potential measures without killing. Unlike previous results, which are written in terms of the known q-scale functions, our formulas are…

Probability · Mathematics 2016-04-04 Jiang Zhou , Lan Wu

Suppose $X_{t}$ is a one-dimensional and real-valued L\'evy process started from $X_0=0$, which ({\bf 1}) its nonnegative jumps measure $\nu$ satisfying $\int_{\Bbb R}\min\{1,x^2\}\nu(dx)<\infty$ and ({\bf 2}) its stopping time $\tau(q)$ is…

Probability · Mathematics 2017-01-20 Amir T. Payandeh Najafabadi , Dan Z. Kucerovsky

In Kuznetsov et al. (2011) a new Monte Carlo simulation technique was introduced for a large family of Levy processes that is based on the Wiener-Hopf decomposition. We pursue this idea further by combining their technique with the recently…