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This paper explores mixture distributions induced by a product of the positive stable random variable and a power of another positive random variable. The paper also considers the convolution of the stable density with a gamma density.…

Probability · Mathematics 2025-07-10 Nomvelo Karabo Sibisi

We develop efficient methods for simulating processes of Ornstein-Uhlenbeck type related to the class of $p$-tempered $\alpha$-stable ($\ts$) distributions. Our results hold for both the univariate and multivariate cases and we consider…

Probability · Mathematics 2022-03-02 Michael Grabchak , Piergiacomo Sabino

In this paper we propose a transform method to compute the prices and greeks of barrier options driven by a class of Levy processes. We derive analytical expressions for the Laplace transforms in time of the prices and sensitivities of…

Pricing of Securities · Quantitative Finance 2009-03-13 Marc Jeannin , Martijn Pistorius

The paper describes the self-decomposable distribution and the background driving L\'evy process (BDLP) associated with the Generalized Tempered Stable (GTS) distribution. Two distributions are provided: the background driving L\'evy…

Probability · Mathematics 2024-05-28 A. H. Nzokem

We consider last-passage percolation models in two dimensions, in which the underlying weight distribution has a heavy tail of index alpha<2. We prove scaling laws and asymptotic distributions, both for the passage times and for the shape…

Probability · Mathematics 2007-05-23 Ben Hambly , James B. Martin

In this paper, we will give a sufficient condition for a non-negative random variable $X$ to be heavy tailed by investigating the Laplace-Stieltjes transform of the probability distribution function. We focus on the relation between the…

Probability · Mathematics 2009-09-02 Kenji Nakagawa

Let $F$ be a nonarchimedean local field of characteristic 0 with residual characteristic $p$ and let $\ell$ be an odd prime with $2\ell<p$. We establish and explicitly compute the local stable transfer factor $\Theta_\phi$ in the sense of…

Number Theory · Mathematics 2022-10-18 Daniel Johnstone

We prove some efficient inference results concerning estimation of a Ornstein-Uhlenbeck regression model, which is driven by a non-Gaussian stable Levy process and where the output process is observed at high-frequency over a fixed time…

Statistics Theory · Mathematics 2023-01-18 Hiroki Masuda

In this paper we introduce five different algorithms based on method of moments, maximum likelihood and full Bayesian estimation for learning the parameters of the Inverse Gamma distribution. We also provide an expression for the KL…

Methodology · Statistics 2016-07-11 A. Llera , C. F. Beckmann

It is known that in many cases distributions of exponential integrals of Levy processes are infinitely divisible and in some cases they are also selfdecomposable. In this paper, we give some sufficient conditions under which distributions…

Statistics Theory · Mathematics 2012-11-26 Anita Behme , Makoto Maejima , Muneya Matsui , Noriyoshi Sakuma

We analyze the \textit{Large Deviation Probability (LDP)} of linear factor models generated from non-identically distributed components with \textit{regularly-varying} tails, a large subclass of heavy tailed distributions. An efficient…

Statistics Theory · Mathematics 2019-12-10 Farzad Pourbabaee , Omid Shams Solari

L\'evy's Upward Theorem says that the conditional expectation of an integrable random variable converges with probability one to its true value with increasing information. In this paper, we use methods from effective probability theory to…

Logic · Mathematics 2024-06-04 Simon M. Huttegger , Sean Walsh , Francesca Zaffora Blando

The family of stable distributions received extensive applications in many fields of studies since it incorporates both the skewness and heavy tails. In this paper, we introduce a package written in the R language called alphastable. The…

Computation · Statistics 2018-09-26 Mahdi Teimouri , Mahdi Torshizi , Adel Mohammadpour , Saralees Nadarajah

The class of $\alpha$-stable distributions is widely used in various applications, especially for modelling heavy-tailed data. Although the $\alpha$-stable distributions have been used in practice for many years, new methods for…

Methodology · Statistics 2022-12-29 Kewin Pączek , Damian Jelito , Marcin Pitera , Agnieszka Wyłomańska

The method of maximum entropy has proven to be a rather powerful way to solve the inverse problem consisting of determining a probability density $f_S(s)$ on $[0,\infty)$ from the knowledge of the expected value of a few generalized…

Optimization and Control · Mathematics 2016-04-22 Henryk Gzyl

State-space models are pivotal for dynamic system analysis but often struggle with outlier data that deviates from Gaussian distributions, frequently exhibiting skewness and heavy tails. This paper introduces a robust extension utilizing…

Signal Processing · Electrical Eng. & Systems 2025-07-31 Yifan Yu , Shengjie Xiu , Daniel P. Palomar

This work provides a survey of the general class of distributions generated from the mixture of the beta random variables. We provide an extensive review of the literature, concerning generating new distributions via the inverse CDF…

Methodology · Statistics 2020-05-12 Palash Sharma

We present the Levy's distributional property for symmetric Levy processes with generating triplet $(0, 0,\nu)$ or $(\sigma>0, \gamma, \nu)$ where $\nu$ is a symmetric measure on $R\backslash\{0\}$. This generalizes the classical Levy's…

Probability · Mathematics 2015-04-28 Hengyu Zhou

We establish several closed pricing formula for various path-independent payoffs, under an exponential L\'evy model driven by the Variance Gamma process. These formulas take the form of quickly convergent series and are obtained via tools…

Pricing of Securities · Quantitative Finance 2020-06-03 Jean-Philippe Aguilar

In this paper, using inverse integral transforms, we derive the exact distribution of the random variable $X$ that is involved in the ratio $Z \stackrel{d}{=} X/(X+Y)$ where $X$ and $Y$ are independent random variables having the same…

Probability · Mathematics 2023-07-14 Roberto Vila , Narayanaswamy Balakrishnan , Marcelo Bourguignon
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