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We study the almost sure behavior of solutions of stochastic differential equations (SDEs) as time goes to zero. Our main general result establishes a functional law of the iterated logarithm (LIL) that applies in the setting of SDEs with…

Probability · Mathematics 2021-06-28 Marco Carfagnini , Juraj Foldes , David P. Herzog

This paper establishes a Freidlin-Wentzell large deviation principle for stochastic differential equations(SDEs) under locally weak monotonicity conditions and Lyapunov conditions. We illustrate the main result of the paper by showing that…

Probability · Mathematics 2021-10-14 Jian Wang , Hao Yang , Jianliang Zhai , Tusheng Zhang

We develop a technique of multiple scale asymptotic expansions along mean flows and a corresponding notion of weak multiple scale convergence. These are applied to homogenize convection dominated parabolic equations with rapidly…

Analysis of PDEs · Mathematics 2016-09-29 Thomas Holding , Harsha Hutridurga , Jeffrey Rauch

We analyze a nonlocal diffusion operator having as special cases the fractional Laplacian and fractional differential operators that arise in several applications. In our analysis, a nonlocal vector calculus is exploited to define a weak…

Analysis of PDEs · Mathematics 2013-03-28 Marta D'Elia , Max Gunzburger

In this paper we study the Hamiltonian dynamics of charged particles subject to a non-self-consistent stochastic electric field, when the plasma is in the so-called weak turbulent regime. We show that the asymptotic limit of the Vlasov…

Analysis of PDEs · Mathematics 2021-10-13 Claude Bardos , Nicolas Besse

We present a one-equation subgrid scale model that evolves the turbulence energy corresponding to unresolved velocity fluctuations in large eddy simulations. The model is derived in the context of the Germano consistent decomposition of the…

Astrophysics · Physics 2009-11-11 W. Schmidt , J. C. Niemeyer , W. Hillebrandt

Parameter estimation for a parabolic linear stochastic partial differential equation in one space dimension is studied observing the solution field on a discrete grid in a fixed bounded domain. Considering an infill asymptotic regime in…

Statistics Theory · Mathematics 2019-11-26 Florian Hildebrandt , Mathias Trabs

We consider the moderate deviations behaviors for two (co-) volatility estima-tors: generalised bipower variation, Hayashi-Yoshida estimator. The results are obtained by using a new result about the moderate deviations principle for…

Probability · Mathematics 2017-02-06 Hacène Djellout , Arnaud Guillin , Hui Jiang , Yacouba Samoura

We focus on extending existing short-rate models, enabling control of the generated implied volatility while preserving analyticity. We achieve this goal by applying the Randomized Affine Diffusion (RAnD) method to the class of short-rate…

Computational Finance · Quantitative Finance 2024-11-27 Lech A. Grzelak

Based on It\^o semimartingale models, several studies have proposed methods for forecasting intraday volatility using high-frequency financial data. These approaches typically rely on restrictive parametric assumptions and are often…

Econometrics · Economics 2025-07-31 Sung Hoon Choi , Donggyu Kim

In industrial applications it is quite common to use stochastic volatility models driven by semi-martingale Markov volatility processes. However, in order to fit exactly market volatilities, these models are usually extended by adding a…

Pricing of Securities · Quantitative Finance 2022-06-22 Enrico Dall'Acqua , Riccardo Longoni , Andrea Pallavicini

Extending It\^o's formula to non-smooth functions is important both in theory and applications. One of the fairly general extensions of the formula, known as Meyer-It\^o, applies to one dimensional semimartingales and convex functions.…

Mathematical Finance · Quantitative Finance 2015-07-02 Ramin Okhrati , Uwe Schmock

We construct intrinsic on-and off-diagonal upper and lower estimates for the transition probability density of a L\'evy process in small time. By intrinsic we mean that such estimates reflect the structure of the characteristic exponent of…

Probability · Mathematics 2013-08-09 Victoria Knopova , Alexei Kulik

In the setting of stochastic Volterra equations, and in particular rough volatility models, we show that conditional expectations are the unique classical solutions to path-dependent PDEs. The latter arise from the functional It\^o formula…

Probability · Mathematics 2026-05-27 Ofelia Bonesini , Antoine Jacquier , Alexandre Pannier

We establish the consistency of a local time approximation of a diffusion at a sticky threshold based on high-frequency observations. First, we prove the result for sticky Brownian motion, and then extend it to It\^o diffusions with a…

Probability · Mathematics 2024-11-08 Alexis Anagnostakis

We present a new methodology to analyze large classes of (classical and rough) stochastic volatility models, with special regard to short-time and small noise formulae for option prices. Our main tool is the theory of regularity structures,…

Pricing of Securities · Quantitative Finance 2021-07-30 Peter K. Friz , Paul Gassiat , Paolo Pigato

We consider the nonlinear Duffing oscillator in presence of fractional damping which is characteristic in different physical situations. The system is studied with a smaller and larger damping parameter value, that we call the underdamped…

Chaotic Dynamics · Physics 2024-03-18 Mattia Coccolo , Jesús M. Seoane , Stefano Lenci , Miguel A. F. Sanjuán

We prove a law of large numbers and functional central limit theorem for a class of multivariate Hawkes processes with time-dependent reproduction rate. We address the difficulties induced by the use of non-convolutive Volterra processes by…

Probability · Mathematics 2025-01-30 Thomas Deschatre , Pierre Gruet , Antoine Lotz

This overview article concerns the notion of fractional smoothness of random variables of the form $g(X_T)$, where $X=(X_t)_{t\in [0,T]}$ is a certain diffusion process. We review the connection to the real interpolation theory, give…

Probability · Mathematics 2010-04-22 Stefan Geiss , Emmanuel Gobet

We consider stochastic partial differential equations under minimal assumptions: the coefficients are merely bounded and measurable and satisfy the stochastic parabolicity condition. In particular, the diffusion term is allowed to be…

Probability · Mathematics 2016-10-18 Konstantinos Dareiotis , Máté Gerencsér