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Stochastic modelling of fatigue (and other material's deterioration), as well as of cumulative damage in risk theory, are often based on compound sums of independent random variables, where the number of addends is represented by an…

Probability · Mathematics 2019-12-02 L. Beghin , J. Gajda , A. Maheshwari

Joint models for longitudinal and time-to-event data have seen many developments in recent years. Though spatial joint models are still rare and the traditional proportional hazards formulation of the time-to-event part of the model is…

Methodology · Statistics 2024-06-25 Anja Rappl , Thomas Kneib , Stefan Lang , Elisabeth Bergherr

We consider the class of single machine scheduling problems with the objective to minimize the weighted number of late jobs, under the assumption that completion due-dates are not known precisely at the time when decision-maker must provide…

Data Structures and Algorithms · Computer Science 2017-08-11 Maciej Drwal

The problem of estimating the probability of a random process reaching a certain level is well known. In this article, two-sided estimates are established for the probability that a regenerative process reaches a high level. Two auxiliary…

Probability · Mathematics 2025-10-29 Kateryna Akbash , Ivan Matsak , Oleg Zakusylo

In this paper, we develop efficient randomized algorithms for estimating probabilistic robustness margin and constructing robustness degradation curve for uncertain dynamic systems. One remarkable feature of these algorithms is their…

Optimization and Control · Mathematics 2008-05-13 Xinjia Chen , Kemin Zhou , Jorge L. Aravena

We set up a structural model to study credit risk for a portfolio containing several or many credit contracts. The model is based on a jump--diffusion process for the risk factors, i.e. for the company assets. We also include correlations…

Risk Management · Quantitative Finance 2008-12-02 Rudi Schäfer , Markus Sjölin , Andreas Sundin , Michal Wolanski , Thomas Guhr

We investigate an insurance risk model that consists of two reserves which receive income at fixed rates. Claims are being requested at random epochs from each reserve and the interclaim times are generally distributed. The two reserves are…

Probability · Mathematics 2015-08-05 E. S. Badila , O. J. Boxma , J. A. C. Resing

In this paper, we obtain the finite-horizon and infinite-horizon ruin probability asymptotics for risk processes with claims of subexponential tails for non-stationary arrival processes that satisfy a large deviation principle. As a result,…

Risk Management · Quantitative Finance 2014-10-16 Lingjiong Zhu

In this paper we derive robust super- and subhedging dualities for contingent claims that can depend on several underlying assets. In addition to strict super- and subhedging, we also consider relaxed versions which, instead of eliminating…

Mathematical Finance · Quantitative Finance 2017-09-14 Patrick Cheridito , Michael Kupper , Ludovic Tangpi

We compute the joint distribution of the first times a linear diffusion makes an excursion longer than some given duration above (resp. below) some fixed level. In the literature, such stopping times have been introduced and studied in the…

Probability · Mathematics 2021-05-31 Christophe Profeta

In studies of recurrent events, joint modeling approaches are often needed to allow for potential dependent censoring by a terminal event such as death. Joint frailty models for recurrent events and death with an additional dependence…

Methodology · Statistics 2023-04-25 Marie Böhnstedt , Jutta Gampe , Monique A. A. Caljouw , Hein Putter

We investigate the asymptotic of ruin probabilities when the company invests its reserve in a risky asset with a switching regime price. We assume that the asset price is a conditional geometric Brownian motion with parameters modulated by…

Probability · Mathematics 2021-10-19 Yuri Kabanov , Serguei Pergamenshchikov

The collective risk model differentiates usually between claims frequencies (and their distribution) and claim sizes (and their distribution). For the claims frequencies typically classical discrete distributions are considered, such as…

Risk Management · Quantitative Finance 2023-09-12 Dietmar Pfeifer

Generalizing earlier works of Delbaen & Haezendonck [5] as well as of [18] and [16] for given compound mixed renewal process S under a probability measure P, we characterize all those probability measures Q on the domain of P such that Q…

Probability · Mathematics 2020-07-16 Spyridon M. Tzaninis , Nikolaos D. Macheras

Since the 1990s, RANS practitioners have observed spontaneous unsteadiness in RANS simulations. Some have suggested deliberately using this as a method of resolving large turbulent structures. However, to date, no one has produced a…

Fluid Dynamics · Physics 2023-07-19 Daniel Israel

We study a risk sensitive control version of the lifetime ruin probability problem. We consider a sequence of investments problems in Black-Scholes market that includes a risky asset and a riskless asset. We present a differential game that…

Optimization and Control · Mathematics 2018-05-02 Erhan Bayraktar , Asaf Cohen

We study small random perturbations by additive white-noise of a spatial discretization of a reaction-diffusion equation with a stable equilibrium and solutions that blow up in finite time. We prove that the perturbed system blows up with…

Probability · Mathematics 2015-01-12 Pablo Groisman , Santiago Saglietti

The classical reduced-form and filtration expansion framework in credit risk is extended to the case of multiple, non-ordered defaults, assuming that conditional densities of the default times exist. Intensities and pricing formulas are…

Risk Management · Quantitative Finance 2011-06-22 Younes Kchia , Martin Larsson

The study deals with the ruin problem when an insurance company having two business branches, life insurance and non-life insurance, invests its reserve into a risky asset with the price dynamics given by a geometric Brownian motion. We…

Probability · Mathematics 2020-11-17 Yuri Kabanov , Nikita Pukhlyakov

In this paper we study the draw-down related Parisian ruin problem for spectrally negative L\'{e}vy risk processes. We introduce the draw-down Parisian ruin time and solve the corresponding two-sided exit time via excursion theory. We also…

Probability · Mathematics 2019-04-25 Wenyuan Wang , Xiaowen Zhou
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