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This paper describes the structure of solutions to Kolmogorov's equations for nonhomogeneous jump Markov processes and applications of these results to control of jump stochastic systems. These equations were studied by Feller (1940), who…

Probability · Mathematics 2021-11-09 Eugene A. Feinberg , Albert N. Shiryaev

This paper studies three ways to construct a nonhomogeneous jump Markov process: (i) via a compensator of the random measure of a multivariate point process, (ii) as a minimal solution of the backward Kolmogorov equation, and (iii) as a…

Probability · Mathematics 2013-04-09 Eugene A. Feinberg , Manasa Mandava , Albert N. Shiryaev

The Kolmogorov-Feller equation for the probability density of a Markov process on a half-axis, which arises in important problems of biology, is considered. This process consists of random jumps distributed according to Laplace's law and a…

Mathematical Physics · Physics 2023-05-30 Olga S. Rozanova

There are some positively divisible non-Markovian processes whose transition matrices satisfy the Chapman-Kolmogorov equation. These processes should also satisfy the Kolmogorov consistency conditions, an essential requirement for a process…

Probability · Mathematics 2024-01-24 Bilal Canturk , Heinz-Peter Breuer

We study the solution to Kolmogorov-Feller equation and by using it provide pricing formulas of well known some options under jump-diffusion model.

Pricing of Securities · Quantitative Finance 2013-03-21 Ju-Gyong Kim , Il-Su Choe

We consider a Markov process on a Riemannian manifold, which solves a stochastic differential equation in the interior of the manifold and jumps according to a deterministic reset map when it reaches the boundary. We derive a partial…

Probability · Mathematics 2007-05-23 Julien Bect , Hana Baili , Gilles Fleury

We provide a direct and elementary proof that the formula obtained in [MQR17] for the TASEP transition probabilities for general (one-sided) initial data solves the Kolmogorov backward equation. The same method yields the solution for the…

Probability · Mathematics 2020-10-13 Mihai Nica , Jeremy Quastel , Daniel Remenik

In this paper we study backward stochastic differential equations (BSDEs) driven by the compensated random measure associated to a given pure jump Markov process X on a general state space K. We apply these results to prove well-posedness…

Probability · Mathematics 2013-02-05 Fulvia Confortola , Marco Fuhrman

A jump process for the positions of interacting quantum particles on a lattice, with time-dependent transition rates governed by the state vector, was first considered by J.S. Bell. We review this process and its continuum variants…

Probability · Mathematics 2007-05-23 Roderich Tumulka , Hans-Otto Georgii

We propose a novel approach for computing committor functions, which describe transitions of a stochastic process between metastable states. The committor function satisfies a backward Kolmogorov equation, and in typical high-dimensional…

Numerical Analysis · Mathematics 2021-08-04 Yian Chen , Jeremy Hoskins , Yuehaw Khoo , Michael Lindsey

The paper studies the rate of convergence of the weak Euler approximation for It\^{o} diffusion and jump processes with H\"{o}lder-continuous generators. It covers a number of stochastic processes including the nondegenerate diffusion…

Probability · Mathematics 2014-01-13 Remigijus Mikulevičius , Changyong Zhang

Semi-Markov processes are a generalization of Markov processes since the exponential distribution of time intervals is replaced with an arbitrary distribution. This paper provides an integro-differential form of the Kolmogorov's backward…

Probability · Mathematics 2017-09-20 Enzo Orsingher , Costantino Ricciuti , Bruno Toaldo

The seek for a new universal formulation for describing various non-equilibrium processes is a central task of modern non-equilibrium thermodynamics. In this paper, a novel steady-state thermodynamic formalism was established for general…

Statistical Mechanics · Physics 2018-02-14 Liangrong Peng , Yi Zhu , Liu Hong

The idea of forward rates stems from interest rate theory. It has natural connotations to transition rates in multi-state models. The generalization from the forward mortality rate in a survival model to multi-state models is non-trivial…

Probability · Mathematics 2019-04-02 K. Buchardt , C. Furrer , M. Steffensen

We study a model of an infinite system of point particles in $\mathds{R}^d$ performing random jumps with attraction. The system's states are probability measures on the space of particle configurations, and their evolution is described by…

Mathematical Physics · Physics 2016-12-28 Yuri Kozitsky

In this paper, we consider a class of inhomogeneous semi-Markov processes directly based on intensity processes for marked point processes. We show that this class satisfies the semi-Markov properties defined elsewhere in the literature. We…

Probability · Mathematics 2015-04-14 Alexander Sokol

Multistate Markov models are a canonical parametric approach for data modeling of observed or latent stochastic processes supported on a finite state space. Continuous-time Markov processes describe data that are observed irregularly over…

We present an optimal control approach to the problem of model calibration for L\'evy processes based on a non parametric estimation procedure. The calibration problem is of considerable interest in mathematical finance and beyond.…

Optimization and Control · Mathematics 2015-06-30 Mario Annunziato , Hanno Gottschalk

In this paper we present the classical results of Kolmogorov's backward and forward equations to the case of a two-parameter Markov process. These equations relates the infinitesimal transition matrix of the two-parameter Markov process.…

Statistics Theory · Mathematics 2012-05-01 Álvaro Calvache , Viswanathan Arunachalam

Suppose that a real valued process X is given as a solution to a stochastic differential equation. Then, for any twice continuously differentiable function f, the backward Kolmogorov equation gives a condition for f(t,X) to be a local…

Probability · Mathematics 2008-08-18 George Lowther
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