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Volterra processes appear in several applications ranging from turbulence to energy finance where they are used in the modelling of e.g. temperatures and wind and the related financial derivatives. Volterra processes are in general…

Optimization and Control · Mathematics 2018-12-24 Giulia di Nunno , Andrea Fiacco , Erik Hove Karlsen

We study class of L\'{e}vy processes having distributions being indentifiable by moments. We define system of polynomial martingales \newline $\left\{ M_{n}(X_{t},t),\mathcal{F}_{\leq t}\right\} _{n\geq 1},$ where $% \mathcal{F}_{\leq t}$…

Probability · Mathematics 2014-03-18 Paweł J. Szabłowski

The purpose of these notes is to distribute, mostly without proofs, fundamental definitions and results concerning the theory of semimartingales and stochastic integration. The material serves as a foundational guide for those interested in…

Probability · Mathematics 2025-01-03 Mark van den Bosch

In the present paper we obtain sufficient conditions for the existence of equivalent martingale measures for L\'{e}vy-driven moving averages and other non-Markovian jump processes. The conditions that we obtain are, under mild assumptions,…

Probability · Mathematics 2017-04-28 Andreas Basse-O'Connor , Mikkel Slot Nielsen , Jan Pedersen

We introduce and discuss L\'evy-type cylindrical martingale problems on separable reflexive Banach spaces. Our main observations are the following: Cylindrical martingale problems have a one-to-one relation to weak solutions of stochastic…

Probability · Mathematics 2018-02-05 David Criens

We introduce a stochastic integral with respect to cylindrical L\'evy processes with finite $p$-th weak moment for $p\in [1,2]$. The space of integrands consists of $p$-summing operators between Banach spaces of martingale type $p$. We…

Probability · Mathematics 2019-12-10 Tomasz Kosmala , Markus Riedle

In this paper we generalize known workload decomposition results for L\'{e}vy queues with secondary jump inputs and queues with server vacations or service interruptions. Special cases are polling systems with either compound Poisson or…

Probability · Mathematics 2017-11-22 Onno Boxma , Offer Kella

In this paper, we study a class of backward stochastic Volterra integral equations driven by Teugels martingales associated with an independent L\'{e}vy process and an independent Brownian motion (BSVIELs). We prove the existence and…

Probability · Mathematics 2016-03-11 Wen Lu

We study a class of stochastic differential equations driven by a possibly tempered L{\'e}vy process, under mild conditions on the coefficients. We prove the well-posedness of the associated martingale problem as well as the existence of…

Probability · Mathematics 2016-02-01 L Huang

In this paper, we derive comparison results for terminal values of $d$-dimensional special semimartingales and also for finite-dimensional distributions of multivariate L\'{e}vy processes. The comparison is with respect to nondecreasing,…

Probability · Mathematics 2016-08-14 Jan Bergenthum , Ludger Rüschendorf

Several versions of It\^{o}'s formula have been obtained in the context of the functional stochastic calculus. Here, we revisit this topic in two ways. First, by defining a notion of derivative along a functional, we extend the setting of…

Probability · Mathematics 2022-02-25 Christian Houdré , Jorge Víquez

Suppose that a real valued process X is given as a solution to a stochastic differential equation. Then, for any twice continuously differentiable function f, the backward Kolmogorov equation gives a condition for f(t,X) to be a local…

Probability · Mathematics 2008-08-18 George Lowther

Assume that $X$ is a continuous square integrable process with zero mean, defined on some probability space $(\Omega,\mathrm {F},\mathrm {P})$. The classical characterization due to P. L\'{e}vy says that $X$ is a Brownian motion if and only…

Probability · Mathematics 2011-03-15 Yuliya Mishura , Esko Valkeila

For a general Multidimensional L\'{e}vy process (satisfying some moment conditions), we introduce the Multidimensional power jump processes and the related Multidimensional Teugels martingales. Furthermore, we orthogonalize the…

Probability · Mathematics 2011-11-02 Jianzhong Lin

The important application of semi-static hedging in financial markets naturally leads to the notion of quasi self-dual processes. The focus of our study is to give new characterizations of quasi self-duality for exponential L\'evy processes…

Risk Management · Quantitative Finance 2012-01-26 Thorsten Rheinländer , Michael Schmutz

In this paper we study processes which are constructed by a convolution of a deterministic kernel with a martingale. A special emphasis is put on the case where the driving martingale is a centred L\'evy process, which covers the popular…

Probability · Mathematics 2021-05-31 Christian Bender , Robert Knobloch , Philip Oberacker

In the present paper, we obtain an explicit product formula for products of multiple integrals w.r.t. a random measure associated with a L\'evy process. As a building block, we use a representation formula for products of martingales from a…

Probability · Mathematics 2023-09-21 Paolo Di Tella , Christel Geiss , Alexander Steinicke

We prove Chung-type laws of the iterated logarithm for general L\'{e}vy processes at zero. In particular, we provide tools to translate small deviation estimates directly into laws of the iterated logarithm. This reveals laws of the…

Probability · Mathematics 2013-02-21 Frank Aurzada , Leif Doering , Mladen Savov

In this work, we present a comprehensive theory of stochastic integration with respect to arbitrary cylindrical L\'evy processes in Hilbert spaces. Since cylindrical L\'evy processes do not enjoy a semi-martingale decomposition, our…

Probability · Mathematics 2024-03-18 Gergely Bodó , Markus Riedle

We introduce a general algorithm for the computation of the scale functions of a spectrally negative L\'evy process $X$, based on a natural weak approximation of $X$ via upwards skip-free continuous-time Markov chains with stationary…

Probability · Mathematics 2015-04-21 Aleksandar Mijatović , Matija Vidmar , Saul Jacka