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Using agent-based modelling, empirical evidence and physical ideas, such as the energy function and the fact that the phase space must have twice the dimension of the configuration space, we argue that the stochastic differential equations…

Mathematical Finance · Quantitative Finance 2017-07-19 Nguyen Tien Zung

We develop a general approach to estimating the derivative of a function-valued parameter $\theta_o(u)$ that is identified for every value of $u$ as the solution to a moment condition. This setup in particular covers many interesting models…

Methodology · Statistics 2016-10-31 Christoph Rothe , Dominik Wied

In this work, we introduce a new class of neural network operators designed to handle problems where memory effects and randomness play a central role. In this work, we introduce a new class of neural network operators designed to handle…

Machine Learning · Computer Science 2025-05-22 Rômulo Damasclin Chaves dos Santos , Jorge Henrique de Oliveira Sales

There has been a great deal of recent interest in learning and approximation of functions that can be expressed as expectations of a given nonlinearity with respect to its random internal parameters. Examples of such representations include…

Optimization and Control · Mathematics 2022-12-05 Tanya Veeravalli , Maxim Raginsky

We consider the problem of selecting deterministic or stochastic models for a biological, ecological, or environmental dynamical process. In most cases, one prefers either deterministic or stochastic models as candidate models based on…

Applications · Statistics 2015-10-26 Libo Sun , Chihoon Lee , Jennifer A. Hoeting

Financial markets have long since been modeled using stochastic methods such as Brownian motion, and more recently, rough volatility models have been built using fractional Brownian motion. This fractional aspect brings memory into the…

Statistical Finance · Quantitative Finance 2024-07-01 Patrick Geraghty

We study \emph{optimal insider control problems}, i.e. optimal control problems of stochastic systems where the controller at any time $t$ in addition to knowledge about the history of the system up to this time, also has additional…

Optimization and Control · Mathematics 2015-10-14 Olfa Draouil , Bernt Øksendal

Fractional stochastic volatility models have been widely used to capture the non-Markovian structure revealed from financial time series of realized volatility. On the other hand, empirical studies have identified scales in stock price…

Mathematical Finance · Quantitative Finance 2019-01-25 Jean-Pierre Fouque , Ruimeng Hu

The problem of function approximation by neural dynamical systems has typically been approached in a top-down manner: Any continuous function can be approximated to an arbitrary accuracy by a sufficiently complex model with a given…

Optimization and Control · Mathematics 2023-09-22 Tanya Veeravalli , Maxim Raginsky

The most common approaches for solving multistage stochastic programming problems in the research literature have been to either use value functions ("dynamic programming") or scenario trees ("stochastic programming") to approximate the…

Optimization and Control · Mathematics 2022-01-04 Warren B Powell , Saeed Ghadimi

In multistage decision problems, it is often the case that an initial strategic decision (such as investment) is followed by many operational ones (operating the investment). Such initial strategic decision can be seen as a parameter…

Optimization and Control · Mathematics 2026-03-17 Adrien Le Franc , Pierre Carpentier , Jean-Philippe Chancelier , Michel de Lara

We establish results for the first sensitivity analysis of the stochastic fluid models (SFMs). We derive expressions for the sensitivity analysis of the key stationary and transient (time-dependent) quantities of this class of models. We…

Probability · Mathematics 2026-05-21 Anna Aksamit , Małgorzata M. O'Reilly , Zbigniew Palmowski

We demonstrate that backward stochastic differential equations (BSDE) may be reformulated as ordinary functional differential equations on certain path spaces. In this framework, neither It\^{o}'s integrals nor martingale representation…

Probability · Mathematics 2012-11-20 Gechun Liang , Terry Lyons , Zhongmin Qian

The choice of how to retain information about past gradients dramatically affects the convergence properties of state-of-the-art stochastic optimization methods, such as Heavy-ball, Nesterov's momentum, RMSprop and Adam. Building on this…

Machine Learning · Computer Science 2020-03-13 Antonio Orvieto , Jonas Kohler , Aurelien Lucchi

In performative prediction, the choice of a model influences the distribution of future data, typically through actions taken based on the model's predictions. We initiate the study of stochastic optimization for performative prediction.…

Machine Learning · Computer Science 2021-02-22 Celestine Mendler-Dünner , Juan C. Perdomo , Tijana Zrnic , Moritz Hardt

Uncertainties are abundant in complex systems. Mathematical models for these systems thus contain random effects or noises. The models are often in the form of stochastic differential equations, with some parameters to be determined by…

Numerical Analysis · Mathematics 2015-03-13 Jiarui Yang , Jinqiao Duan

Sparse functional/longitudinal data have attracted widespread interest due to the prevalence of such data in social and life sciences. A prominent scenario where such data are routinely encountered are accelerated longitudinal studies,…

Methodology · Statistics 2024-06-24 Yidong Zhou , Hans-Georg Müller

We propose a model of fractal point process driven by the nonlinear stochastic differential equation. The model is adjusted to the empirical data of trading activity in financial markets. This reproduces the probability distribution…

Physics and Society · Physics 2009-11-13 V. Gontis , B. Kaulakys

The study of systems with memory requires methods which are different from the methods used in regular dynamics. Systems with power-law memory in many cases can be described by fractional differential equations, which are…

Chaotic Dynamics · Physics 2014-05-20 Mark Edelman

We analyze the relative price change of assets starting from basic supply/demand considerations subject to arbitrary motivations. The resulting stochastic differential equation has coefficients that are functions of supply and demand. We…

Theoretical Economics · Economics 2020-08-26 Carey Caginalp , Gunduz Caginalp