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Let $X$ be a real L\'evy process and let $\Xpos $ be the process conditioned to stay positive. We assume that $ 0 $ is regular for $(-\infty, 0)$ and $(0, +\infty) $ with respect to $X$. Using elementary excursion theory arguments, we…

Probability · Mathematics 2007-05-23 Thomas Duquesne

We offer a unified approach to the theory of convex minorants of L\'{e}vy processes with continuous distributions. New results include simple explicit constructions of the convex minorant of a L\'{e}vy process on both finite and infinite…

Probability · Mathematics 2012-07-31 Jim Pitman , Gerónimo Uribe Bravo

We provide, in a general setting, explicit solutions for optimal stopping problems that involve diffusion process and its running maximum. Our approach is to use the excursion theory for Levy processes. Since general diffusions are, in…

Optimization and Control · Mathematics 2016-09-13 Masahiko Egami , Tadao Oryu

We give a proof of Lehoczky's drawdown formula for one-dimensional diffusion processes, using the Poisson structure of the excursions of the diffusion below its running maximum.

Probability · Mathematics 2022-09-13 P. J. Fitzsimmons

We provide, in a general setting, explicit solutions for optimal stopping problems that involve a diffusion process and its running maximum. Besides, a new feature includes absorbing boundaries that vary with the value of the running…

Optimization and Control · Mathematics 2016-02-16 Masahiko Egami , Tadao Oryu

Among Markovian processes, the hallmark of L\'evy flights is superdiffusion, or faster-than-Brownian dynamics. Here we show that L\'evy laws, as well as Gaussians, can also be the limit distributions of processes with long range memory that…

Statistical Mechanics · Physics 2016-02-10 Denis Boyer , Inti Pineda

We construct the law of L\'{e}vy processes conditioned to stay positive under general hypotheses. We obtain a Williams type path decomposition at the minimum of these processes. This result is then applied to prove the weak convergence of…

Probability · Mathematics 2016-08-16 Loïc Chaumont , Ron A. Doney

Levy flights and subdiffusive processes and their properties are discussed. We derive the space- and time-fractional transport equations, and consider their solutions in external potentials. An extensive list of references is included.

Statistical Mechanics · Physics 2007-06-26 Ralf Metzler , Aleksei V. Chechkin , Joseph Klafter

In this paper we give excursion theoretical proofs of Lehoczky's formula (in an extended form allowing a lower bound for the underlying diffusion) for the joint distribution of the first drawdown time and the maximum before this time, and…

Probability · Mathematics 2024-11-28 Paavo Salminen , Pierre Vallois

In this paper, we analyze some distributions involving the longest and shortest negative excursions of spectrally negative L\'evy processes using the binomial expansion approach. More specifically, we study the distributions of such…

Probability · Mathematics 2024-11-12 M. A. Lkabous , Z. Palmowski

The natural analogue for a Levy process of Cramer's estimate for a reflected random walk is a statement about the exponential rate of decay of the tail of the characteristic measure of the height of an excursion above the minimum. We…

Probability · Mathematics 2007-05-23 R. A. Doney , R. A. Maller

The one dimensional distribution of a L\'{e}vy process is not known in general even though its characteristic function is given by the famous L\'{e}vy-Khinchine theorem. This article gives an exact series representation for the one…

Probability · Mathematics 2008-09-15 Heikki J. Tikanmäki

It is well-known that the excursions of a one-dimensional diffusion process can be studied by considering a certain Riccati equation associated with the process. We show that, in many cases of interest, the Riccati equation can be solved in…

Probability · Mathematics 2010-02-11 Alain Comtet , Yves Tourigny

The crossover among two or more types of diffusive processes represents a vibrant theme in nonequilibrium statistical physics. In this work we propose two models to generate crossovers among different L\'evy processes: in the first model we…

Statistical Mechanics · Physics 2020-09-15 Maike A. F. dos Santos , Fernando D. Nobre , Evaldo M. F. Curado

Anomalous dynamics in which local perturbations spread faster than diffusion are ubiquitously observed in the long-time behavior of a wide variety of systems. Here, the manner by which such systems evolve towards their asymptotic…

Statistical Mechanics · Physics 2020-04-09 Asaf Miron

Without higher moment assumptions, this note establishes the decay of the Kolmogorov distance in a central limit theorem for L\'evy processes. This theorem can be viewed as a continuous-time extension of the classical random walk result by…

Probability · Mathematics 2021-07-01 David Bang , Jorge Ignacio González Cázares , Aleksandar Mijatović

It is recognised now that a variety of real-life phenomena ranging from diffuson of cold atoms to motion of humans exhibit dispersal faster than normal diffusion. L\'evy walks is a model that excelled in describing such superdiffusive…

Statistical Mechanics · Physics 2017-01-03 V. Zaburdaev , I. Fouxon , S. Denisov , E. Barkai

We establish a nondominated version of the optional decomposition theorem in a setting that includes jump processes with nonvanishing diffusion as well as general continuous processes. This result is used to derive a robust superhedging…

Mathematical Finance · Quantitative Finance 2015-07-20 Marcel Nutz

We establish a novel characterisation of the law of the convex minorant of any L\'evy process. Our self-contained elementary proof is based on the analysis of piecewise linear convex functions and requires only very basic properties of…

Probability · Mathematics 2022-07-06 Jorge Ignacio González Cázares , Aleksandar Mijatović

This article is about right inverses of Levy processes as first introduced by Evans in the symmetric case and later studied systematically by the present authors and their co-authors. Here we add to the existing fluctuation theory an…

Probability · Mathematics 2010-03-11 Mladen Savov , Matthias Winkel
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