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We construct the basis of a stochastic calculus for so-called Volterra processes, i.e., processes which are defined as the stochastic integral of a time-dependent kernel with respect to a standard Brownian motion. For these processes which…

Probability · Mathematics 2007-05-23 L. Decreusefond

We develop a stochastic calculus for processes which are built by convoluting a pure jump, zero expectation L\'{e}vy process with a Volterra-type kernel. This class of processes contains, for example, fractional L\'{e}vy processes as…

Probability · Mathematics 2008-12-18 Christian Bender , Tina Marquardt

In this paper we study set-valued Volterra-type stochastic integrals driven by L\'{e}vy processes. Upon extending the classical definitions of set-valued stochastic integral functionals to convoluted integrals with square-integrable…

Probability · Mathematics 2024-12-04 Weixuan Xia

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

The classical notion of L\'evy process is generalized to one that takes as its values probabilities on a first order model equipped with a commutative semigroup. This is achieved by applying a convolution product on definable probabilities…

Logic · Mathematics 2009-10-27 Siu-Ah Ng

Generalization of the It\^{o}-Wentzel formula for the generalized It\^{o}'s SDEs (It\^{o}'s GSDEs) system with not centered measure is constructed. This construction is based on the basis of the stochastic kernel of integral transformation.…

Probability · Mathematics 2011-11-08 Elena V. Karachanskaya

Several versions of It\^{o}'s formula have been obtained in the context of the functional stochastic calculus. Here, we revisit this topic in two ways. First, by defining a notion of derivative along a functional, we extend the setting of…

Probability · Mathematics 2022-02-25 Christian Houdré , Jorge Víquez

In the paper we study stochastic convolution appearing in Volterra equation driven by so called L\'evy process. By L\'evy process we mean a process with homogeneous independent increments, continuous in probability and cadlag.

Probability · Mathematics 2007-05-23 Anna Karczewska

Gaussian processes are rich distributions over functions, with generalization properties determined by a kernel function. When used for long-range extrapolation, predictions are particularly sensitive to the choice of kernel parameters. It…

Machine Learning · Statistics 2018-02-05 Phillip A. Jang , Andrew E. Loeb , Matthew B. Davidow , Andrew Gordon Wilson

Fractional Brownian motion can be represented as an integral of a deterministic kernel w.r.t. an ordinary Brownian motion either on infinite or compact interval. In previous literature fractional L\'evy processes are defined by integrating…

Probability · Mathematics 2011-11-11 Heikki Tikanmäki , Yuliya Mishura

Several versions of It\^{o}'s formula have been obtained in the setting of the functional stochastic calculus. In this regard, we present a local time-space version that works for arbitrary bounded and continuous functionals of L\'{e}vy…

Probability · Mathematics 2024-06-04 Christian Houdré , Jorge Víquez

We prove the It\^o-Wentzell formula for processes with values in the space of generalized functions by using the stochastic Fubini theorem and the It\^o-Wentzell formula for real-valued processes, appropriate versions of which are also…

Probability · Mathematics 2009-07-15 N. V. Krylov

We establish It\^o's formula along flows of probability measures associated with general semimartingales; this generalizes existing results for flows of measures on It\^o processes. Our approach is to first establish It\^o's formula for…

Probability · Mathematics 2022-09-20 Xin Guo , Huyên Pham , Xiaoli Wei

Generalization of the It\^{o}-Wentzell formula for the generalized It\^{o}'s SDE (It\^{o}'s GSDE) system with a non-centered measure is constructed on the basis of the stochastic kernel of integral transformation. The It\^{o}'s GSDE system…

Probability · Mathematics 2011-12-06 Elena V. Karachanskaya

We present an alternative construction of the infinite dimensional It\^{o} integral with respect to a Hilbert space valued L\'{e}vy process. This approach is based on the well-known theory of real-valued stochastic integration, and the…

Probability · Mathematics 2025-11-21 Stefan Tappe

We derive an Ito-type change-of-variables formula for Volterra Gaussian processes (including fractional Brownian motion with any Hurst parameter), based on the operator factorization framework. The Ito correction is expressed as a Stieltjes…

Probability · Mathematics 2026-02-18 Ramiro Fontes

We present a numerical method to produce stochastic dynamics according to the generalized Langevin equation with a non-stationary memory kernel. This type of dynamics occurs when a microscopic system with an explicitly time-dependent…

Statistical Mechanics · Physics 2022-11-30 Christoph Widder , Fabian Glatzel , Tanja Schilling

Motivated by the construction of the It\^o stochastic integral, we consider a step function method to discretize and simulate volatility modulated L\'evy semistationary processes. Moreover, we assess the accuracy of the method with a…

Applications · Statistics 2014-07-11 Mikkel Bennedsen , Asger Lunde , Mikko S. Pakkanen

A comparison principle for stochastic integro-differential equations driven by Levy processes is proved. This result is obtained via an extension of an Ito formula from [11] for the square of the norm of the positive part of $L_2-$valued,…

Probability · Mathematics 2016-09-09 Konstantinos Dareiotis , Istvan Gyongy

In the present paper, we obtain an explicit product formula for products of multiple integrals w.r.t. a random measure associated with a L\'evy process. As a building block, we use a representation formula for products of martingales from a…

Probability · Mathematics 2023-09-21 Paolo Di Tella , Christel Geiss , Alexander Steinicke
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