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This paper is devoted to parameter estimation for partially observed polynomial state space models. This class includes discretely observed affine or more generally polynomial Markov processes. The polynomial structure allows for the…

Statistics Theory · Mathematics 2025-07-11 Jan Kallsen , Ivo Richert

Lions and Musiela (2007) give sufficient conditions to verify when a stochastic exponential of a continuous local martingale is a martingale or a uniformly integrable martingale. Blei and Engelbert (2009) and Mijatovi\'c and Urusov (2012c)…

Probability · Mathematics 2014-07-10 Carole Bernard , Zhenyu Cui , Don McLeish

We provide necessary and sufficient conditions for convergence of exponential integrals of Markov additive processes. Other than in the classical L\'evy case studied by Erickson and Maller we have to distinguish between almost sure…

Probability · Mathematics 2020-03-06 Anita Behme , Apostolos Sideris

We show the existence of a stationary measure for a class of multidimensional stochastic Volterra systems of affine type. These processes are in general not Markovian, a shortcoming which hinders their large-time analysis. We circumvent…

Probability · Mathematics 2025-09-18 Antoine Jacquier , Alexandre Pannier , Konstantinos Spiliopoulos

We consider the Markov renewal equation $F(t) = f(t) + \boldsymbol{\mu}*F(t)$ for vector-valued functions $f,F: \mathbb{R} \to \mathbb{R}^{p}$ and a $p \times p$ matrix $\boldsymbol{\mu}$ of locally finite measures $\mu^{i,j}$ on…

Probability · Mathematics 2025-03-10 Konrad Kolesko , Matthias Meiners , Ivana Tomic

We consider a stochastic factor financial model where the asset price process and the process for the stochastic factor depend on an observable Markov chain and exhibit an affine structure. We are faced with a finite time investment horizon…

Portfolio Management · Quantitative Finance 2014-03-21 Marcos Escobar , Daniela Neykova , Rudi Zagst

Assuming a certain form of resolution of singularities, we prove a general existential Ax-Kochen/Ershov principle for tamely ramified fields in all characteristics. This specializes to well-known results in residue characteristic $0$ and…

Algebraic Geometry · Mathematics 2022-10-17 Konstantinos Kartas

Shot-Noise processes constitute a useful tool in various areas, in particular in finance. They allow to model abrupt changes in a more flexible way than processes with jumps and hence are an ideal tool for modelling stock prices, credit…

Mathematical Finance · Quantitative Finance 2017-01-01 Thorsten Schmidt

In this paper, we introduce a class of processes that contains many natural examples. The interesting feature of such type processes lays on its infinite memory that allows it to record a quite ancient history. Then, using the martingale…

Probability · Mathematics 2025-03-04 Paul Doukhan , Xiequan Fan

First we provide a simple set of sufficient conditions for the weak convergence of scaled affine processes with state space $R_+ \times R^d$. We specialize our result to one-dimensional continuous state branching processes with immigration.…

Statistics Theory · Mathematics 2013-03-19 Matyas Barczy , Leif Doering , Zenghu Li , Gyula Pap

This work extends the variance reduction method for the pricing of possibly path-dependent derivatives, which was developed in (Genin and Tankov, 2016) for exponential L\'evy models, to affine stochastic volatility models (Keller-Ressel,…

Probability · Mathematics 2018-09-18 Zorana Grbac , David Krief , Peter Tankov

This article provides the mathematical foundation for stochastically continuous affine processes on the cone of positive semidefinite symmetric matrices. This analysis has been motivated by a large and growing use of matrix-valued affine…

Probability · Mathematics 2011-04-12 Christa Cuchiero , Damir Filipović , Eberhard Mayerhofer , Josef Teichmann

We introduce a class of Markov processes, called $m$-polynomial, for which the calculation of (mixed) moments up to order $m$ only requires the computation of matrix exponentials. This class contains affine processes, processes with…

Probability · Mathematics 2012-03-22 Christa Cuchiero , Martin Keller-Ressel , Josef Teichmann

We give sufficient criteria for the Dol\'eans-Dade exponential of a stochastic integral with respect to a counting process local martingale to be a true martingale. The criteria are adapted particularly to the case of counting processes and…

Probability · Mathematics 2015-09-09 Alexander Sokol , Niels Richard Hansen

Linear fractional Galton-Watson branching processes in i.i.d.~random environment are, on the quenched level, intimately connected to random difference equations by the evolution of the random parameters of their linear fractional marginals.…

Probability · Mathematics 2021-10-01 Gerold Alsmeyer

In this article we study a class of stochastic functional differential equations driven by L\'{e}vy processes (in particular, $\alpha$-stable processes), and obtain the existence and uniqueness of Markov solutions in small time intervals.…

Probability · Mathematics 2012-11-30 Xicheng Zhang

The characteristic functions of multivariate Feller processes with generator of affine type, and with smooth symbol functions have an explicit representation in terms of power series with rational number coefficients and with monmoms…

Functional Analysis · Mathematics 2010-02-17 Joerg Kampen

In this paper, we investigate specific least action principles for laws of stochastic processes within a framework which stands on filtrations preserving variations. The associated Euler-Lagrange conditions, which we obtain, exhibit a…

Probability · Mathematics 2022-08-08 Rémi Lassalle

The behavior of affine processes, which are ubiquitous in a wide range of applications, depends crucially on the choice of state space. We study the case where the state space is compact, and prove in particular that (i) no diffusion is…

Probability · Mathematics 2018-03-13 Paul Krühner , Martin Larsson

Over the past few years quadratic Backward Stochastic Differential Equations (BSDEs) have been a popular field of research. However there are only very few examples where explicit solutions for these equations are known. In this paper we…

Probability · Mathematics 2012-01-16 Anja Richter