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Markov processes are used in a wide range of disciplines, including finance. The transition densities of these processes are often unknown. However, the conditional characteristic functions are more likely to be available, especially for…

Statistics Theory · Mathematics 2013-02-04 Song X. Chen , Liang Peng , Cindy L. Yu

This paper focuses on hypothesis testing for the input of a L\'evy-driven storage system by sampling of the storage level. As the likelihood is not explicit we propose two tests that rely on transformation of the data. The first approach…

Probability · Mathematics 2020-11-23 Michel Mandjes , Liron Ravner

Motivated by classical considerations from risk theory, we investigate boundary crossing problems for refracted L\'evy processes. The latter is a L\'evy process whose dynamics change by subtracting off a fixed linear drift (of suitable…

Probability · Mathematics 2008-05-12 Andreas E. Kyprianou , Ronnie Loeffen

We find necessary and sufficient conditions for almost sure finiteness of integral functionals of spectrally positive L\'evy processes. Via Lamperti type transforms, these results can be applied to obtain new integral tests on extinction…

Probability · Mathematics 2020-06-15 Pei-Sen Li , Xiaowen Zhou

This paper provides rate-efficient estimators of the volatility parameter in the presence of L\'{e}vy jumps

Statistics Theory · Mathematics 2016-08-16 Yacine Aït-Sahalia , Jean Jacod

In this article, the problem of semi-parametric inference on the parameters of a multidimensional L\'{e}vy process $L_t$ with independent components based on the low-frequency observations of the corresponding time-changed L\'{e}vy process…

Methodology · Statistics 2012-01-31 Denis Belomestny

In this manuscript, we continue with the systematic study of the speed of extinction of continuous state branching processes in L\'evy environments under more general branching mechanisms. Here, we deal with the weakly subcritical regime…

Probability · Mathematics 2023-02-20 Natalia Cardona-Tobón , Juan Carlos Pardo

In this paper we present an $L^p$-theory for the stochastic partial differential equations (SPDEs in abbreciation) driven by L\'e{}vy processes. Existence and uniqueness of solutions in Sobolev spaces are obtained. The coefficients of SPDEs…

Probability · Mathematics 2010-07-21 Zhen-Qing Chen , Kyeong-Hun Kim

We prove gradient estimates for harmonic functions with respect to a $d$-dimensional unimodal pure-jump Levy process under some mild assumptions on the density of its Levy measure. These assumptions allow for a construction of an unimodal…

Probability · Mathematics 2013-07-30 Tadeusz Kulczycki , Michal Ryznar

We prove that the upward ladder height subordinator $H$ associated to a real valued L\'{e}vy process $\xi$ has Laplace exponent $\phi$ that varies regularly at $\infty$ (resp. at 0) if and only if the underlying L\'{e}vy process $\xi$…

Probability · Mathematics 2007-05-23 Victor Rivero

The expected signature kernel arises in statistical learning tasks as a similarity measure of probability measures on path space. Computing this kernel for known classes of stochastic processes is an important problem that, in particular,…

Probability · Mathematics 2025-09-10 Peter K. Friz , Paul P. Hager

This paper considers discretization of the L\'evy process appearing in the Lamperti representation of a strictly positive self-similar Markov process. Limit theorems for the resulting approximation are established under some regularity…

Probability · Mathematics 2020-06-17 Jevgenijs Ivanovs , Jakob D. Thøstesen

The index Whittaker convolution operator, recently introduced by the authors, gives rise to a convolution measure algebra having the property that the convolution of probability measures is a probability measure. In this paper, we introduce…

Probability · Mathematics 2018-05-09 Rúben Sousa , Manuel Guerra , Semyon Yakubovich

In this paper we study the asymptotic properties of the power variations of stochastic processes of the type X=Y+L, where L is an alpha-stable Levy process, and Y a perturbation which satisfies some mild Lipschitz continuity assumptions. We…

Probability · Mathematics 2008-11-25 C. Hein , P. Imkeller , I. Pavlyukevich

Exponential L\'evy processes can be used to model the evolution of various financial variables such as FX rates, stock prices, etc. Considerable efforts have been devoted to pricing derivatives written on underliers governed by such…

Pricing of Securities · Quantitative Finance 2012-06-29 Leif Andersen , Alexander Lipton

In this paper, conditions for transience, recurrence, ergodicity and strong, subexponential (polynomial) and exponential ergodicity of a class of Feller processes are derived. The conditions are given in terms of the coefficients of the…

Probability · Mathematics 2016-04-04 Nikola Sandrić

Taking account of recent developments in the representation of $d$-dimensional isotropic stable L\'evy processes as self-similar Markov processes, we consider a number of new ways to condition its path. Suppose that $\Omega$ is a region of…

Probability · Mathematics 2021-04-09 Andreas E. Kyprianou , Sandra Palau , Tsogzolmaa Saizmaa

We consider the passage time problem for L\'evy processes, emphasising heavy tailed cases. Results are obtained under quite mild assumptions, namely, drift to $-\infty$ a.s. of the process, possibly at a linear rate (the finite mean case),…

Probability · Mathematics 2016-03-24 Ron Doney , Claudia Klüppelberg , Ross Maller

Subordinating a multivariate L\'evy process, the subordinate, with a univariate subordinator gives rise to a pathwise construction of a new L\'evy process, provided the subordinator and the subordinate are independent processes. The…

Probability · Mathematics 2017-11-13 Boris Buchmann , Kevin Lu , Dilip B. Madan

Conditioning Markov processes to avoid a set is a classical problem that has been studied in many settings. In the present article we study the question if a Levy process can be conditioned to avoid an interval and, if so, the path behavior…

Probability · Mathematics 2021-01-22 Leif Doering , Alexander R. Watson , Philip Weissmann
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