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In this paper I develop a new computational method for pricing path dependent options. Using the path integral representation of the option price, I show that in general it is possible to perform analytically a partial averaging over the…

Statistical Mechanics · Physics 2016-08-31 Andrew Matacz

Continuous time random walks (CTRWs) are used in physics to model anomalous diffusion, by incorporating a random waiting time between particle jumps. In finance, the particle jumps are log-returns and the waiting times measure delay between…

Data Analysis, Statistics and Probability · Physics 2008-12-10 Mark M. Meerschaert , Enrico Scalas

In this paper continuous time random walk models approximating fractional space-time diffusion processes are studied. Stochastic processes associated with the considered equations represent time-changed processes, where the time-change…

Probability · Mathematics 2014-09-16 Sabir Umarov

As an alternative but unified and more fundamental description for quantum physics, Feynman path integrals generalize the classical action principle to a probabilistic perspective, under which the physical observables' estimation translates…

High Energy Physics - Lattice · Physics 2023-03-03 Shile Chen , Oleh Savchuk , Shiqi Zheng , Baoyi Chen , Horst Stoecker , Lingxiao Wang , Kai Zhou

We obtain direct, finite, descriptions of a renormalized quantum mechanical system with no reference to ultraviolet cutoffs and running coupling constants, in both the Hamiltonian and path integral pictures. The path integral description…

High Energy Physics - Theory · Physics 2009-10-30 R. J. Henderson , S. G. Rajeev

Generalization of the Kac integral and Kac method for paths measure based on the Levy distribution has been used to derive fractional diffusion equation. Application to nonlinear fractional Ginzburg-Landau equation is discussed.

Mathematical Physics · Physics 2015-03-12 Vasily E. Tarasov , George M. Zaslavsky

In the probability representation of the standard quantum mechanics, the explicit expression (and its quasiclassical van-Fleck approximation) for the ``classical'' propagator (transition probability distribution), which completely describes…

Quantum Physics · Physics 2007-05-23 Olga Man'ko , V. I. Man'ko

Work statistics characterizes important features of a non-equilibrium thermodynamic process. But the calculation of the work statistics in an arbitrary non-equilibrium process is usually a cumbersome task. In this work, we study the work…

Statistical Mechanics · Physics 2020-03-18 Tian Qiu , Zhaoyu Fei , Rui Pan , H. T. Quan

Continuous time random walks (CTRW) on finite arbitrarily inhomogeneous chains are studied. By introducing a technique of counting all possible trajectories, we derive closed-form solutions in Laplace space for the Green's function and for…

Soft Condensed Matter · Physics 2007-05-23 Ophir Flomenbom , Joseph Klafter

The path integral formalism gives a very illustrative and intuitive understanding of quantum mechanics but due to its difficult sum over phases one usually prefers Schr\"odinger's approach. We will show that it is possible to calculate…

Quantum Physics · Physics 2007-05-23 A. Dullweber , E. R. Hilf , E. Mendel

The usual development of the continuous-time random walk (CTRW) proceeds by assuming that the present is one of the jumping times. Under this restrictive assumption integral equations for the propagator and mean escape times have been…

Statistical Finance · Quantitative Finance 2009-07-17 Javier Villarroel , Miquel Montero

We consider continuous time random walks (CTRW) and discuss situations pertinent to aging. These correspond to the case when the initial state of the system is known not at preparation (at $t=0$) but at the later instant of time $t_1>0$…

Statistical Mechanics · Physics 2007-10-16 V. Yu. Zaburdaev , I. M. Sokolov

Continuous Time Random Walk(CTRW) is a model where particle's jumps in space are coupled with waiting times before each jump. A Continuous Time Random Walk Limit(CTRWL) is obtained by a limit procedure on a CTRW and can be used to model…

Probability · Mathematics 2016-02-12 Ofer Busani

We adapt continuous time random walk (CTRW) formalism to describe asset price evolution and discuss some of the problems that can be treated using this approach. We basically focus on two aspects: (i) the derivation of the price…

Physics and Society · Physics 2008-12-10 J. Masoliver , M. Montero , J. Perello , G. H. Weiss

This article develops a methodology allowing application of the complete machinery of particle-based inference methods upon the class of continuous-discrete State Space Models (CD-SSMs). Such models correspond to a latent continuous-time…

Methodology · Statistics 2025-11-17 Christopher Stanton , Alexandros Beskos

The solution of a nonlinear diffusion equation is numerically investigated using the generalized Fourier transform method. This equation includes fractal dimensions and power-law dependence on the radial variable and on the diffusion…

Computational Physics · Physics 2019-11-12 Jie Yao , Cameron L. Williams , Fazle Hussain , Donald J. Kouri

Feynman's path integral approach is to sum over all possible spatio-temporal paths to reproduce the quantum wave function and the corresponding time evolution, which has enormous potential to reveal quantum processes in classical view.…

We consider a generalised diffusion equation in two dimensions for modeling diffusion on a comb-like structures. We analyse the probability distribution functions and we derive the mean squared displacement in $x$ and $y$ directions.…

Statistical Mechanics · Physics 2016-06-23 Trifce Sandev , Alexander Iomin , Holger Kantz , Ralf Metzler , Aleksei Chechkin

A new class of relativistic diffusions encompassing all the previously studied examples has recently been introduced by C. Chevalier and F. Debbasch, both in a heuristic and analytic way. A pathwise approach of these processes is proposed…

Probability · Mathematics 2008-11-03 Ismael Bailleul

In this paper, we consider the composition of two independent processes : one process corresponds to position and the other one to time. Such processes will be called iterated processes. We first propose an algorithm based on the Euler…

Probability · Mathematics 2017-05-03 Michèle Thieullen , Alexis Vigot
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