English
Related papers

Related papers: Marginal density expansions for diffusions and sto…

200 papers

We obtain the asymptotic expansion of the solutions of some anisotropic heat equations when the initial data belong to polynomially weighted Lp-spaces. We mainly address two model examples. In the first one, the diffusivity is of order two…

Analysis of PDEs · Mathematics 2012-05-24 Liviu I. Ignat , Enrique Zuazua

In this paper, we derive higher-order expansions of $L$-statistics of independent risks $X_1, \ldots, X_n$ under conditions on the underlying distribution function $F$. The new results are applied to derive the asymptotic expansions of…

Probability · Mathematics 2014-10-08 E. Hashorva , C. Ling , Z. Peng

The martingale expansion provides a refined approximation to the marginal distributions of martingales beyond the normal approximation implied by the martingale central limit theorem. We develop a martingale expansion framework specifically…

Probability · Mathematics 2026-02-06 Masaaki Fukasawa

Let $X$ be a L\'evy process with absolutely continuous L\'evy measure $\nu$. Small time polynomial expansions of order $n$ in $t$ are obtained for the tails $P(X_{t}\geq{}y)$ of the process, assuming smoothness conditions on the L\'evy…

Probability · Mathematics 2008-12-12 José E. Figueroa-López , Christian Houdré

In this paper we study short time asymptotics of a density function of the solution of a stochastic differential equation driven by fractional Brownian motion with Hurst parameter $H \in (1/2, 1)$ when the coefficient vector fields satisfy…

Probability · Mathematics 2014-05-26 Yuzuru Inahama

A semilinear reaction-diffusion two-point boundary value problem, whose second-order derivative is multiplied by a small positive parameter $\eps^2$, is considered. It can have multiple solutions. An asymptotic expansion is constructed for…

Numerical Analysis · Mathematics 2013-03-20 Natalia Kopteva , Martin Stynes

We study the dynamics of the normal implied volatility in a local volatility model, using a small-time expansion in powers of maturity T. At leading order in this expansion, the asymptotics of the normal implied volatility is similar, up to…

Computational Finance · Quantitative Finance 2015-03-19 Viorel Costeanu , Dan Pirjol

We obtain asymptotic expansions for the large deviation principle (LDP) for continuous time stochastic processes with weakly dependent increments. As a key example, we show that additive functionals of solutions of stochastic differential…

Probability · Mathematics 2021-04-06 Kasun Fernando , Pratima Hebbar

We consider the Halfin-Whitt diffusion process $X_d(t)$, which is used, for example, as an approximation to the $m$-server $M/M/m$ queue. We use recently obtained integral representations for the transient density $p(x,t)$ of this diffusion…

Probability · Mathematics 2015-05-06 Qiang Zhen , Charles Knessl

Using distribution theory we present the moment asymptotic expansion of continuous wavelet transform in different distributional spaces for large and small values of dilation parameter $a$. We also obtain asymptotic expansions for certain…

Functional Analysis · Mathematics 2014-05-02 R S Pathak , Ashish Pathak

We consider a Markov process $X$, which is the solution of a stochastic differential equation driven by a L\'{e}vy process $Z$ and an independent Wiener process $W$. Under some regularity conditions, including non-degeneracy of the…

Probability · Mathematics 2014-07-03 José E. Figueroa-López , Yankeng Luo , Cheng Ouyang

We study a stochastic differential equation in the sense of rough path theory driven by fractional Brownian rough path with Hurst parameter H (1/3 < H <= 1/2) under the ellipticity assumption at the starting point. In such a case, the law…

Probability · Mathematics 2016-03-29 Yuzuru Inahama

We establish some asymptotic expansions for infinite weighted convolution of distributions having regular varying tails. Various applications to statistics and probability are developed.

Probability · Mathematics 2007-06-13 Ph. Barbe , W. P. McCormick

An inductive procedure is developed to calculate the asymptotic behavior at time zero of a diffusion with polynomial drift and degenerate, additive noise. The procedure gives rise to two different rescalings of the process; namely, a…

Probability · Mathematics 2024-12-17 Juraj Földes , David P. Herzog

We establish some asymptotic expansions for infinite weighted convolutions of distributions having light subexponential tails. Examples are presented, some showing that in order to obtain an expansion with two significant terms, one needs…

Probability · Mathematics 2007-06-13 Ph. Barbe , W. P. McCormick

We consider a stochastic volatility model with L\'evy jumps for a log-return process $Z=(Z_{t})_{t\geq 0}$ of the form $Z=U+X$, where $U=(U_{t})_{t\geq 0}$ is a classical stochastic volatility process and $X=(X_{t})_{t\geq 0}$ is an…

Pricing of Securities · Quantitative Finance 2012-02-23 J. E. Figueroa-López , R. Gong , C. Houdré

In this paper, we investigate stochastic heat equation with sublinear diffusion coefficients. By assuming certain concavity of the diffusion coefficient, we establish non-trivial moment upper bounds and almost sure spatial asymptotic…

Probability · Mathematics 2023-06-13 Le Chen , Panqiu Xia

Explicit representations of densities for linear parabolic partial differential equations are useful in order to design computation schemes of high accuracy for a considerable class of diffusion models. Approximations of lower order based…

Analysis of PDEs · Mathematics 2010-12-07 Joerg Kampen

We study the asymptotic expansions with respect to $h$ of \[\mathrm{E}[\Delta_hf(X_t)],\qquad \mathrm{E}[\Delta_hf(X_t)|\mathscr{F}^X_t]\quadand\quad \mathrm{E}[\Delta_hf(X_t)|X_t],\] where $\Delta_hf(X_t)=f(X_{t+h})-f(X_t)$, when…

Probability · Mathematics 2009-09-29 Sébastien Darses , Ivan Nourdin

A steady-state convection-diffusion problem with a small diffusion of order $\mathcal{O}(\varepsilon)$ is considered in a thin three-dimensional graph-like junction consisting of thin cylinders connected through a domain (node) of diameter…

Analysis of PDEs · Mathematics 2022-08-12 Taras A. Mel'nyk , Arsen V. Klevtsovskiy