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Stochastic processes find applications in modelling systems in a variety of disciplines. A large number of stochastic models considered are Markovian in nature. It is often observed that higher order Markov processes can model the data…

Probability · Mathematics 2021-04-13 Suryadeepto Nag

Markov chains are used to give a purely probabilistic way of understanding the conjugacy classes of the finite symplectic and orthogonal groups in odd characteristic. As a corollary of these methods one obtains a probabilistic proof of…

Group Theory · Mathematics 2007-05-23 Jason Fulman

Consider a system of \(n\) players in which each initially starts on a different team. At each time step, we select an individual winner and an individual loser randomly and the loser joins the winner's team. The resulting Markov chain and…

Probability · Mathematics 2014-01-15 Robert Mena , Will Murray

A new algebraic multilevel algorithm for computing the second eigenvector of a column-stochastic matrix is presented. The method is based on a deflation approach in a multilevel aggregation framework. In particular a square and stretch…

Numerical Analysis · Mathematics 2018-01-03 Lukas Polthier

In this brief note, we find formulas for the distribution and the transition probability matrices of a stochastic process described as a time-reversion in a finite time window of a Markov chain, with cluster observation of the Markov state…

Probability · Mathematics 2022-06-14 Daniel A. Gutierrez-Pachas , Eduardo F. Costa , Alessandro N. Vargas

A general method to construct recombinant tree approximations for stochastic volatility models is developed and applied to the Heston model for stock price dynamics. In this application, the resulting approximation is a four tuple Markov…

Computational Finance · Quantitative Finance 2016-08-14 Erdinç Akyıldırım , Yan Dolinsky , H. Mete Soner

We consider the averaging principle for deterministic or stochastic systems with a fast stochastic component (family of continuous-time Markov chains depending on the state of the system as a parameter). We show that, due to bifurcations in…

Probability · Mathematics 2020-02-25 Mark Freidlin , Leonid Koralov

A new approach for optimal estimation of Markov chains with sparse transition matrices is presented.

Computation · Statistics 2009-05-27 Iuliana Teodorescu

We consider the problem of estimating the transition rate matrix of a continuous-time Markov chain from a finite-duration realisation of this process. We approach this problem in an imprecise probabilistic framework, using a set of prior…

Machine Learning · Statistics 2018-07-12 Thomas Krak , Alexander Erreygers , Jasper De Bock

The analysis of many problems of interest associated with Markov chains, e.g. stationary distributions, moments of first passage time distributions and moments of occupation time random variables, involves the solution of a system of linear…

Probability · Mathematics 2012-08-29 Jeffrey J. Hunter

We discuss a definition of robust dominant eigenvector of a family of stochastic matrices. Our focus is on application to ranking problems, where the proposed approach can be seen as a robust alternative to the standard PageRank technique.…

Optimization and Control · Mathematics 2012-06-22 Anatoli Juditsky , Boris Polyak

A continuous-time Markov chain rate change formula for simulation, model selection, filtering and theory is proven. It is used to develop Markov chain importance sampling, rejection sampling, branching particle filtering algorithms and…

Statistics Theory · Mathematics 2023-08-14 Michael A. Kouritzin

Poisson's equation plays a fundamental role as a tool for performance evaluation and optimization of Markov chains. For continuous-time birth-death chains with possibly unbounded transition and cost rates as addressed herein, when…

Probability · Mathematics 2022-07-28 José Niño-Mora

Phylogenetic invariants are certain polynomials in the joint probability distribution of a Markov model on a phylogenetic tree. Such polynomials are of theoretical interest in the field of algebraic statistics and they are also of practical…

Populations and Evolution · Quantitative Biology 2008-01-21 Nicholas Eriksson

This article presents several results establishing connections be- tween Markov chains and dynamical systems, from the point of view of open systems in physics. We show how all Markov chains can be understood as the information on one…

Probability · Mathematics 2010-10-18 Stéphane Attal

We consider the parameter estimation of Markov chain when the unknown transition matrix belongs to an exponential family of transition matrices. Then, we show that the sample mean of the generator of the exponential family is an…

Statistics Theory · Mathematics 2016-09-28 Masahito Hayashi , Shun Watanabe

A method of constructing Markov chains on finite state spaces is provided. The chain is specified by three constraints: stationarity, dependence and marginal distributions. The generalized Pythagorean theorem in information geometry plays a…

Statistics Theory · Mathematics 2024-07-26 Tomonari Sei

We construct a probability distribution, induced by the Perron--Frobenius eigenvector of an exponentially large graph, which cannot be efficiently sampled by any classical algorithm, even when provided with the best-possible warm-start…

Quantum Physics · Physics 2026-02-27 Yassine Hamoudi , Yvan Le Borgne , Shrinidhi Teganahally Sridhara

We discuss Stein's method for approximation by the stationary distribution of a single-birth Markov chain, in conjunction with stochastic monotonicity and similar assumptions. We use bounds on the increments of the solution of Poisson's…

Probability · Mathematics 2024-11-08 Fraser Daly

Estimation and prediction in high dimensional multivariate factor stochastic volatility models is an important and active research area because such models allow a parsimonious representation of multivariate stochastic volatility. Bayesian…

Computation · Statistics 2021-04-27 David Gunawan , Robert Kohn , David Nott