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We investigate Wiener-transformable markets, where the driving process is given by an adapted transformation of a Wiener process. This includes processes with long memory, like fractional Brownian motion and related processes, and, in…

Probability · Mathematics 2018-08-30 Elena Boguslavskaya , Yuliya Mishura , Georgiy Shevchenko

Stochastic differential equations (SDEs) are popular tools to analyse time series data in many areas, such as mathematical finance, physics, and biology. They provide a mechanistic description of the phenomeon of interest, and their…

Methodology · Statistics 2021-02-01 Théo Michelot , Richard Glennie , Catriona Harris , Len Thomas

For degenerate stochastic differential equations driven by fractional Brownian motions with Hurst parameter $H>1/2$, the derivative formulas are established by using Malliavin calculus and coupling method, respectively. Furthermore, we find…

Probability · Mathematics 2018-03-02 Xiliang Fan

Discrete time control systems whose dynamics and observations are described by stochastic equations are common in engineering, operations research, health care, and economics. For example, stochastic filtering problems are usually defined…

Optimization and Control · Mathematics 2025-02-05 Eugene A. Feinberg , Sayaka Ishizawa , Pavlo O. Kasyanov , David N. Kraemer

We provide sufficient conditions for the existence and uniqueness of solutions to a stochastic differential equation which arises in a price impact model. These conditions are stated as smoothness and boundedness requirements on utility…

Trading and Market Microstructure · Quantitative Finance 2014-10-21 Peter Bank , Dmitry Kramkov

Stochastic differential equations (SDEs) describe dynamical systems where deterministic flows, governed by a drift function, are superimposed with random fluctuations, dictated by a diffusion function. The accurate estimation (or discovery)…

Machine Learning · Computer Science 2025-10-22 Patrick Seifner , Kostadin Cvejoski , David Berghaus , Cesar Ojeda , Ramses J. Sanchez

Stochastic mathematical models are essential tools for understanding and predicting complex phenomena. The purpose of this work is to study the exit times of a stochastic dynamical system-specifically, the mean exit time and the…

Probability · Mathematics 2025-08-06 Eric José Ávila-Vales , José Villa-Morales

Differential equations (DEs) are commonly used to describe dynamic systems evolving in one (ordinary differential equations or ODEs) or in more than one dimensions (partial differential equations or PDEs). In real data applications the…

Methodology · Statistics 2013-11-25 Gianluca Frasso , Jonathan Jaeger , Philippe Lambert

On a series of examples from the field of viscoelasticity we demonstrate that it is possible to attribute physical meaning to initial conditions expressed in terms of Riemann-Liouville fractional derivatives, and that it is possible to…

Mathematical Physics · Physics 2007-05-23 Nicole Heymans , Igor Podlubny

Field-theoretic construction of functional representations of solutions of stochastic differential equations and master equations is reviewed. A generic expression for the generating function of Green functions of stochastic systems is put…

Mathematical Physics · Physics 2012-10-16 Juha Honkonen

Determining functionals are tools to describe the finite dimensional long-term dynamics of infinite dimensional dynamical systems. There also exist several applications to infinite dimensional {\em random} dynamical systems. In these…

Chaotic Dynamics · Physics 2007-05-23 Igor Chueshov , Jinqiao Duan , Bjorn Schmalfuss

The work relates to a new way for analysis of one-dimensional stochastic systems, based on consideration of its higher order difference structure. From this point of view, the deterministic and random processes are analyzed. A new numerical…

Chaotic Dynamics · Physics 2016-09-08 A. Yu. Shahverdian , A. V. Apkarian

This article proposes a method for forming invariant stochastic differential systems, namely dynamic systems with trajectories belonging to a given smooth manifold. The It\^o or Stratonovich stochastic differential equations with the Wiener…

Probability · Mathematics 2026-02-03 Konstantin A. Rybakov

A system responding to a stochastic driving signal can be interpreted as computing, by means of its dynamics, an implicit model of the environmental variables. The system's state retains information about past environmental fluctuations,…

Statistical Mechanics · Physics 2012-10-09 Susanne Still , David A. Sivak , Anthony J. Bell , Gavin E. Crooks

We model the dynamics of asset prices and associated derivatives by consideration of the dynamics of the conditional probability density process for the value of an asset at some specified time in the future. In the case where the price…

Pricing of Securities · Quantitative Finance 2011-11-14 Damir Filipović , Lane P. Hughston , Andrea Macrina

Multistage stochastic optimization problems are oftentimes formulated informally in a pathwise way. These are correct in a discrete setting and suitable when addressing computational challenges, for example. But the pathwise problem…

Optimization and Control · Mathematics 2021-02-23 Paul Dommel , Alois Pichler

In this paper we address the one-dimensional problem of stochastic renewal in different damping environments. An ensemble of particles with some specified initial distribution in phase space are allowed to evolve stochastically till a…

Statistical Mechanics · Physics 2016-11-26 Jyotipriya Roy , Chitrak Bhadra , Debapriya Das , Dhruba Banerjee , Deb Shankar Ray

The fractional order system, which is described by the fractional order derivative and integral, has been studied in many engineering areas. Recently, the concept of fractional order has been generalized to the distributed order concept,…

Systems and Control · Computer Science 2013-12-12 Pham Luu Trung Duong , Moonyong Lee

Many physical, biological, and engineered systems exhibit memory effects that challenge Markovian models. Fractional calculus provides nonlocal operators to capture hereditary dynamics. This survey connects modeling, analysis, and…

Optimization and Control · Mathematics 2025-12-16 Navid Mojahed , Hooman Fatoorehchi , Shima Nazari

In this paper, a fractional derivative with short-term memory properties is defined, which can be viewed as an extension of Caputo fractional derivative. Then, some properties of the short memory fractional derivative are discussed. Also, a…

Dynamical Systems · Mathematics 2020-07-14 Xudong Hai , Guojian Ren , Yongguang Yu , Lipo Mo , Conghui Xu
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