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We present an It\^o formula for the $L_p$-norm of jump processes having stochastic differentials in $L_p$-spaces. The main results extend well-known theorems of Krylov to the case of processes with jumps, and which can be used to prove…

Probability · Mathematics 2019-05-01 István Gyöngy , Sizhou Wu

An explicit martingale representation for random variables described as a functional of a Levy process will be given. The Clark-Ocone theorem shows that integrands appeared in a martingale representation are given by conditional…

Mathematical Finance · Quantitative Finance 2019-06-18 Takuji Arai , Ryoichi Suzuki

Large classes of multi-dimensional Gaussian processes can be enhanced with stochastic Levy area(s). In a previous paper, we gave sufficient and essentially necessary conditions, only involving variational properties of the covariance.…

Probability · Mathematics 2007-11-06 Peter Friz , Nicolas Victoir

We consider nonlinear integro-differential equations, like the ones that arise from stochastic control problems with purely jump L\`evy processes. We obtain a nonlocal version of the ABP estimate, Harnack inequality, and interior…

Analysis of PDEs · Mathematics 2010-03-31 Luis Caffarelli , Luis Silvestre

In general, adding a stochastic perturbation to a differential equation possessing an invariant manifold destroys the invariance as far as the It\^o formalism is used. In this article, we propose an invariantization method for perturbations…

Mathematical Physics · Physics 2018-09-26 Jacky Cresson , Yasmina Kheloufi , Khadra Nachi

The paper considers the integration theory for $G$-L\'evy processes with finite activity. We introduce the It\^o-L\'evy integrals, give the It\^o formula for them and establish SDE's, BSDE's and decoupled FBSDE's driven by $G$-L\'evy…

Probability · Mathematics 2014-11-11 Krzysztof Paczka

In this article, the existence and uniqueness about the solution for a class of stochastic fractional-order differential equation systems are investigated, where the fractional derivative is described in Caputo sense. The fractional…

Numerical Analysis · Mathematics 2016-11-24 Guang-an Zou , Bo Wang

We demonstrate the large deviation principle in the small noise limit for the mild solution of stochastic evolution equations with monotone nonlinearity. A recently developed method, weak convergent method, has been employed in studying the…

Probability · Mathematics 2013-09-10 Hassan Dadashi

We establish a moderate deviation principle for processes with independent increments under certain growth conditions for the characteristics of the process. Using this moderate deviation principle, we give a new proof for Strassen's…

Probability · Mathematics 2016-05-20 Franziska Kühn , René L. Schilling

We use the martingale convergence method to get the weak convergence theorem on general functionals of partial sums of independent heavy-tailed random variables. The limiting process is the stochastic integral driven by $\alpha-$stable…

Statistics Theory · Mathematics 2014-11-18 Zhengyan Lin , Hanchao Wang

We propose new nonparametric estimators of the integrated volatility of an It\^{o} semimartingale observed at discrete times on a fixed time interval with mesh of the observation grid shrinking to zero. The proposed estimators achieve the…

Statistics Theory · Mathematics 2014-05-30 Jean Jacod , Viktor Todorov

Statistical inference for stochastic processes based on high-frequency observations has been an active research area for more than two decades. One of the most well-known and widely studied problems has been the estimation of the quadratic…

Econometrics · Economics 2024-04-23 B. Cooper Boniece , José E. Figueroa-López , Yuchen Han

In this paper, based on the white noise analysis of square integrable pure-jump Levy process given by [1], we define the formal derivative of fractional Levy process defined by the square integrable pure-jump Levy process as the fractional…

Probability · Mathematics 2013-07-17 Xuebin Lu , Wanyang Dai

Averaging is an important method to extract effective macroscopic dynamics from complex systems with slow modes and fast modes. This article derives an averaged equation for a class of stochastic partial differential equations without any…

Analysis of PDEs · Mathematics 2009-04-10 W. Wang , A. J. Roberts

This work focuses on topics related to Hamiltonian stochastic differential equations with L\'{e}vy noise. We first show that the phase flow of the stochastic system preserves symplectic structure, and propose a stochastic version of…

Dynamical Systems · Mathematics 2019-07-24 Pingyuan Wei , Ying Chao , Jinqiao Duan

The article is devoted to the integration order replacement technique for iterated Ito stochastic integrals and iterated stochastic integrals with respect to martingales. We consider the class of iterated Ito stochastic integrals, for which…

Probability · Mathematics 2022-04-28 Dmitriy F. Kuznetsov

We give an extension of L\^e's stochastic sewing lemma [Electron. J. Probab. 25: 1 - 55, 2020]. The stochastic sewing lemma proves convergence in $L_m$ of Riemann type sums $\sum _{[s,t] \in \pi } A_{s,t}$ for an adapted two-parameter…

Probability · Mathematics 2023-09-22 Toyomu Matsuda , Nicolas Perkowski

We present an abstract framework to study weak convergence of numerical approximations of linear stochastic partial differential equations driven by additive L\'evy noise. We first derive a representation formula for the error which we then…

Probability · Mathematics 2016-02-25 Mihály Kovács , Felix Lindner , René L. Schilling

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

The solution of rough differential equation, driven by the It\^o signature of a continuous local martingale, exists uniquely a.s. when the vector field is Lip(\beta) for \beta > 1, and coincides a.s. with the It\^o signature of the solution…

Probability · Mathematics 2013-11-04 Terry J. Lyons , Danyu Yang