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In this article, the problem of semi-parametric inference on the parameters of a multidimensional L\'{e}vy process $L_t$ with independent components based on the low-frequency observations of the corresponding time-changed L\'{e}vy process…

Methodology · Statistics 2012-01-31 Denis Belomestny

We solve the Skorokhod embedding problem for a class of stochastic processes satisfying an inhomogeneous stochastic differential equation (SDE) of the form $d A_t =\mu (t, A_t) d t + \sigma(t, A_t) d W_t$. We provide sufficient conditions…

Probability · Mathematics 2019-06-19 Stefan Ankirchner , Stefan Engelhardt , Alexander Fromm , Goncalo dos Reis

The classical Skorokhod embedding problem for a Brownian motion $W$ asks to find a stopping time $\tau$ so that $W_\tau$ is distributed according to a prescribed probability distribution $\mu$. Many solutions have been proposed during the…

Probability · Mathematics 2019-08-01 Leif Doering , Lukas Gonon , David J. Prömel , Oleg Reichmann

We present an explicit solution to the Skorokhod embedding problem for spectrally negative L\'evy processes. Given a process $X$ and a target measure $\mu$ satisfying an explicit admissibility condition we define functions $\f_\pm$ such…

Probability · Mathematics 2008-03-27 Jan Obloj , Martijn Pistorius

In this paper we consider a connection between the famous Skorohod embedding problem and the Shiryaev inverse problem for the first hitting time distribution of a Brownian motion: given a probability distribution, $F$, find a boundary such…

Probability · Mathematics 2011-11-01 Sebastian Jaimungal , Alexander Kreinin , Angel Valov

In this paper, we provide some results on Skorokhod embedding with local time and its applications to the robust hedging problem in finance. First we investigate the robust hedging of options depending on the local time by using the…

Probability · Mathematics 2017-10-31 Julien Claisse , Gaoyue Guo , Pierre Henry-Labordere

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

We solve explicitly the following problem: for a given probability measure mu, we specify a generalised martingale diffusion X which, stopped at an independent exponential time T, is distributed according to mu. The process X is specified…

Probability · Mathematics 2009-12-10 Alexander M. G. Cox , David G. Hobson , Jan K. Obłój

Let $X=(X_t)_{t\geq 0}$ be a known process and $T$ an unknown random time independent of $X$. Our goal is to derive the distribution of $T$ based on an iid sample of $X_T$. Belomestny and Schoenmakers (2015) propose a solution based the…

Probability · Mathematics 2019-05-27 Viktor Schulmann

We solve the Skorokhod embedding problem (SEP) for a general time-homogeneous diffusion $X$: given a distribution $\rho$, we construct a stopping time $\tau$ such that the stopped process $X_{\tau}$ has the distribution $\rho$. Our solution…

Probability · Mathematics 2015-06-02 Stefan Ankirchner , David Hobson , Philipp Strack

In this paper we study the problem of statistical inference for a continuous-time moving average L\'evy process of the form $$Z_{t} = \int_{\mathbb{R}}\mathcal{K}(t-s)\, dL_{s},\quad t\in\mathbb{R}$$ with a deterministic kernel (\K\) and a…

Statistics Theory · Mathematics 2016-08-19 Denis Belomestny , Vladimir Panov , Jeannette Woerner

We provide asymptotic results and develop high frequency statistical procedures for time-changed L\'evy processes sampled at random instants. The sampling times are given by first hitting times of symmetric barriers whose distance with…

Probability · Mathematics 2010-07-20 Mathieu Rosenbaum , Peter Tankov

Stochastic optimal control problems have a long tradition in applied probability, with the questions addressed being of high relevance in a multitude of fields. Even though theoretical solutions are well understood in many scenarios, their…

Statistics Theory · Mathematics 2024-05-28 Sören Christensen , Claudia Strauch , Lukas Trottner

We consider the inverse problem of reconstructing the posterior measure over the trajec- tories of a diffusion process from discrete time observations and continuous time constraints. We cast the problem in a Bayesian framework and derive…

Machine Learning · Statistics 2016-12-21 Botond Cseke , David Schnoerr , Manfred Opper , Guido Sanguinetti

We present a new construction of a Skorohod embedding, namely, given a probability measure mu with zero expectation and finite variance, we construct an integrable stopping time T adapted to a filtration F_t, such that W_t has the law mu,…

Probability · Mathematics 2015-05-06 Ronen Eldan

We study the estimation of the value function for continuous-time Markov diffusion processes using a single, discretely observed ergodic trajectory. Our work provides non-asymptotic statistical guarantees for the least-squares…

Machine Learning · Computer Science 2025-02-07 Wenlong Mou

The study of time-inhomogeneous Markov jump processes is a traditional topic within probability theory that has recently attracted substantial attention in various applications. However, their flexibility also incurs a substantial…

Probability · Mathematics 2023-11-03 Martin Bladt , Oscar Peralta

The Skorokhod embedding problem aims to represent a given probability measure on the real line as the distribution of Brownian motion stopped at a chosen stopping time. In this paper, we consider an extension of the optimal Skorokhod…

Probability · Mathematics 2016-08-04 Gaoyue Guo , Xiaolu Tan , Nizar Touzi

We study stochastic differential equations (SDEs) of McKean-Vlasov type with distribution dependent drifts and driven by pure jump L\'{e}vy processes. We prove a uniform in time propagation of chaos result, providing quantitative bounds on…

Probability · Mathematics 2020-11-10 Mingjie Liang , Mateusz B. Majka , Jian Wang

Our goal is to estimate the characteristic exponent of the input to a L\'evy-driven storage system from a sample of equispaced workload observations. The estimator relies on an approximate moment equation associated with the…

Probability · Mathematics 2024-08-29 Dennis Nieman , Michel Mandjes , Liron Ravner
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