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We define a new class of positive and Lebesgue measurable functions in terms of their asymptotic behavior, which includes the class of regularly varying functions. We also characterize it by transformations, corresponding to generalized…

Probability · Mathematics 2014-12-02 Meitner Cadena , Marie Kratz

Using three hypergeometric identities, we evaluate the harmonic measure of a finite interval and of its complementary for a strictly stable real L{\'e}vy process. This gives a simple and unified proof of several results in the literature,…

Probability · Mathematics 2015-01-19 Christophe Profeta , Thomas Simon

Stable distributions are a celebrated class of probability laws used in various fields. The $\alpha$-stable process, and its exponentially tempered counterpart, the Classical Tempered Stable (CTS) process, are also prominent examples of…

Probability · Mathematics 2024-12-10 Taher Jalal

Around the 1960s a celebrated collection of papers emerged offering a number of explicit identities for the class of isotropic stable processes in one and higher dimensions; these include, for example, the lauded works of Blumenthal,…

Probability · Mathematics 2018-03-06 Andreas E. Kyprianou

The aim of this note is to give a straightforward proof of a general version of the Ciesielski-Taylor identity for positive self-similar Markov processes of the spectrally negative type which umbrellas all previously known Ciesielski-Taylor…

Probability · Mathematics 2010-12-15 A. E. Kyprianou , P. Patie

We obtain a representation of an inhomogeneous Levy process in a Lie group or a homogeneous space in terms of a drift, a matrix function and a measure function. Because the stochastic continuity is not assumed, our result generalizes the…

Probability · Mathematics 2014-12-30 Ming Liao

This paper considers the valuation of exotic path-dependent options in L\'evy models, in particular options on the supremum and the infimum of the asset price process. Using the Wiener--Hopf factorization, we derive expressions for the…

Pricing of Securities · Quantitative Finance 2011-05-03 Ernst Eberlein , Kathrin Glau , Antonis Papapantoleon

When is it possible to interpret a given Markov process as a L\'evy-like process? Since the class of L\'evy processes can be defined by the relation between transition probabilities and convolutions, the answer to this question lies in the…

Probability · Mathematics 2020-09-08 Rúben Sousa , Manuel Guerra , Semyon Yakubovich

In this paper we study the domain of stable processes, stable-like processes and more general pseudo- and integro-differential operators which naturally arise both in analysis and as infinitesimal generators of L\'evy- and L\'evy-type…

Probability · Mathematics 2019-02-26 Franziska Kühn , René L. Schilling

The Wiener--Hopf factorisation of a L\'evy or Markov additive process describes the way that it attains new maxima and minima in terms of a pair of so-called ladder height processes. Vigon's theory of friendship for L\'evy processes…

Probability · Mathematics 2024-10-15 Leif Döring , Lukas Trottner , Alexander R. Watson

We obtain a new fluctuation identity for a general L\'{e}vy process giving a quintuple law describing the time of first passage, the time of the last maximum before first passage, the overshoot, the undershoot and the undershoot of the last…

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

We consider a class of assets whose risk-neutral pricing dynamics are described by an exponential L\'evy-type process subject to default. The class of processes we consider features locally-dependent drift, diffusion and default-intensity…

Computational Finance · Quantitative Finance 2013-04-19 Antoine Jacquier , Matthew Lorig

For general (1+1)-affine Markov processes, we prove the ergodicity and exponential ergodicity in total variation distances. Our methods follow the arguments of ergodic properties for L\'{e}vy-driven OU-processes and a coupling of…

Probability · Mathematics 2021-04-27 Shukai Chen , Zenghu Li

We characterise the convergence of a certain class of discrete time Markov processes toward locally Feller processes in terms of convergence of associated operators. The theory of locally Feller processes is applied to L\'evy-type processes…

Probability · Mathematics 2017-09-12 Mihai Gradinaru , Tristan Haugomat

Taking account of recent developments in the representation of $d$-dimensional isotropic stable L\'evy processes as self-similar Markov processes, we consider a number of new ways to condition its path. Suppose that $\Omega$ is a region of…

Probability · Mathematics 2021-04-09 Andreas E. Kyprianou , Sandra Palau , Tsogzolmaa Saizmaa

By the probabilistic coupling approach which combines a new refined basic coupling with the synchronous coupling for L\'evy processes, we obtain explicit exponential contraction rates in terms of the standard $L^1$-Wasserstein distance for…

Probability · Mathematics 2024-02-20 Yao Liu , Jian Wang , Meng-ge Zhang

We derive characteristic function identities for conditional distributions of an r-trimmed Levy process given its r largest jumps up to a designated time t. Assuming the underlying Levy process is in the domain of attraction of a stable…

Probability · Mathematics 2018-09-06 Yuguang F. Ipsen , Peter Kevei , Ross A. Maller

It is shown that the classical quadratic and cubic transformation identities satisfied by the hypergeometric function ${}_3F_2$ can be extended to include additional parameter pairs, which differ by integers. In the extended identities,…

Classical Analysis and ODEs · Mathematics 2023-02-15 Robert S. Maier

Long memory processes driven by L\'evy noise with finite second-order moments have been well studied in the literature. They form a very rich class of processes presenting an autocovariance function which decays like a power function. Here,…

Probability · Mathematics 2022-04-20 G. L. Feltes , S. R. C. Lopes

Following from recent developments by Hubalek and Kyprianou, the objective of this paper is to provide further methods for constructing new families of scale functions for spectrally negative L\'evy processes which are completely explicit.…

Probability · Mathematics 2007-12-24 Andreas E. Kyprianou , Ví ctor Rivero
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