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Using Dupire's notion of vertical derivative, we provide a functional (path-dependent) extension of the It\^o's formula of Gozzi and Russo (2006) that applies to C^{0,1}-functions of continuous weak Dirichlet processes. It is motivated and…

Probability · Mathematics 2021-01-12 Bruno Bouchard , Grégoire Loeper , Xiaolu Tan

The mild Ito formula proposed in Theorem 1 in [Da Prato, G., Jentzen, A., \& R\"ockner, M., A mild Ito formula for SPDEs, arXiv:1009.3526 (2012), To appear in the Trans.\ Amer.\ Math.\ Soc.] has turned out to be a useful instrument to study…

Probability · Mathematics 2021-11-02 Sonja Cox , Arnulf Jentzen , Ryan Kurniawan , Primož Pušnik

In this paper, we consider a type of time-changed Markov process, where the time-change is an inverse killed subordinator. This can be seen as an extension of Chen (Chen, Z., Time fractional equations and probabilistic representation, Chaos…

Probability · Mathematics 2019-12-09 Huiyan Zhao , Siyan xu

We provide an It\^o's formula for $C^1$-functionals of flows of conditional marginal distributions of continuous semimartingales. This is based on the notion of weak Dirichlet process, and extends the $C^1$-It\^o's formula in Gozzi and…

Probability · Mathematics 2024-04-30 Bruno Bouchard , Xiaolu Tan , Jixin Wang

To define oscillatory movements of securities market, we put in the non-local extension of Ito- equation for wavelet-images of random processes. It is proposed an algorithm of creation of evolutionary equation and a model of prediction of…

Statistical Finance · Quantitative Finance 2010-08-02 A. M. Avdeenko

We study the continuity property of multiple Q-adapted quantum stochastic integrals with respect to noncommuting integrands given by the non-adapted multiple integral kernels in Fock scale. The noncommutative algebra of relatively…

Mathematical Physics · Physics 2011-12-02 Viacheslav P. Belavkin , Matthew F. Brown

The martingale comparison method is extended to derive comparison results for path-independent functions for general semimartingales. Our approach allows to dismiss with the Markovian assumption on one of the processes made in previous…

Probability · Mathematics 2019-08-28 Benedikt Köpfer , Ludger Rüschendorf

Stochastic quantization in physics has been considered to provide a path integral representation of a probability distribution for Ito processes. It has been indicated that the stochastic quantization can involve a potential term, if the…

Systems and Control · Computer Science 2020-05-05 Masakazu Sano

We use the abstract method of (local) martingale problems in order to give criteria for convergence of stochastic processes. Extending previous notions, the formulation we use is neither restricted to Markov processes (or semimartingales),…

Probability · Mathematics 2021-08-27 David Criens , Peter Pfaffelhuber , Thorsten Schmidt

We give an infinitesimal meaning to the symbol $dX_t$ for a continuous semimartingale $X$ at an instant in time $t$. We define a vector space structure on the space of differentials at time $t$ and deduce key properties consistent with the…

Probability · Mathematics 2022-06-30 John Armstrong , Andrei Ionescu

The present paper continues the study of infinite dimensional calculus via regularization, started by C. Di Girolami and the second named author, introducing the notion of "weak Dirichlet process" in this context. Such a process $\X$,…

Probability · Mathematics 2016-06-14 Giorgio Fabbri , Francesco Russo

This paper provides an existence-and-uniqueness theorem characterizing the stochastic integral with respect to a Wiener process. The integral is represented as a mapping from the space of measurable and adapted pathwise locally integrable…

Probability · Mathematics 2018-12-27 Lars Tyge Nielsen

It is shown that under a certain condition on a semimartingale and a time-change, any stochastic integral driven by the time-changed semimartingale is a time-changed stochastic integral driven by the original semimartingale. As a direct…

Probability · Mathematics 2010-10-26 Kei Kobayashi

The Markov approximation is arguably the most ubiquitous tool in physics, underpinning quantum master equations, stochastic processes, and -- via Shannon's channel model and Lamport's logical clocks -- the foundational assumptions of…

Distributed, Parallel, and Cluster Computing · Computer Science 2026-03-17 Paul Borrill

Given a multi-dimensional It\^{o} process whose drift and diffusion terms are adapted processes, we construct a weak solution to a stochastic differential equation that matches the distribution of the It\^{o} process at each fixed time.…

Probability · Mathematics 2013-07-23 Gerard Brunick , Steven Shreve

We consider approximations of a continuous function on a countable normed Fr\'{e}chet space by analytic and $*$-analytic. Also we found a criterium of the existence of an extension of a continuous function from a dense subspace of a…

Functional Analysis · Mathematics 2015-05-01 M. A. Mytrofanov , A. V. Ravsky

In this paper, we study darning of general symmetric Markov processes by shorting some parts of the state space into singletons. A natural way to construct such processes is via Dirichlet forms restricted to the function space whose members…

Probability · Mathematics 2017-02-08 Zhen-Qing Chen , Jun Peng

Comparison results are given for time-inhomogeneous Markov processes with respect to function classes induced stochastic orderings. The main result states comparison of two processes, provided that the comparability of their infinitesimal…

Probability · Mathematics 2015-05-13 Ludger Rueschendorf , Alexander Schnurr , Viktor Wolf

In this paper, we provide strong $L_2$-rates of approximation of the integral-type functionals of Markov processes by integral sums. We improve the method developed in [2]. Under assumptions on the process formulated only in terms of its…

Probability · Mathematics 2015-08-13 Iurii Ganychenko

A Markov Additive Process is a bi-variate Markov process $(\xi,J)=\big((\xi_t,J_t),t\geq0\big)$ which should be thought of as a multi-type L\'evy process: the second component $J$ is a Markov chain on a finite space $\{1,\ldots,K\}$, and…

Probability · Mathematics 2018-10-04 Robin Stephenson
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