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This paper gives an overview of the theory of dynamic convex risk measures for random variables in discrete time setting. We summarize robust representation results of conditional convex risk measures, and we characterize various time…

Risk Management · Quantitative Finance 2010-02-22 Beatrice Acciaio , Irina Penner

Inverse problems describe the process of estimating the causal factors from a set of measurements or data. Mapping of often incomplete or degraded data to parameters is ill-posed, thus data-driven iterative solutions are required, for…

Artificial Intelligence · Computer Science 2024-06-21 Weitong Zhang , Chengqi Zang , Liu Li , Sarah Cechnicka , Cheng Ouyang , Bernhard Kainz

Scalar dynamic risk measures for univariate positions in continuous time are commonly represented as backward stochastic differential equations. In the multivariate setting, dynamic risk measures have been defined and studied as families of…

Risk Management · Quantitative Finance 2021-01-19 Çağın Ararat , Zachary Feinstein

In this paper, by proposing two new kinds of distributional uncertainty sets, we explore robustness of distortion risk measures against distributional uncertainty. To be precise, we first consider a distributional uncertainty set which is…

Risk Management · Quantitative Finance 2025-08-15 Xiangyu Han , Yijun Hu , Ran Wang , Linxiao Wei

Worst-case risk measures refer to the calculation of the largest value for risk measures when only partial information of the underlying distribution is available. For the popular risk measures such as Value-at-Risk (VaR) and Conditional…

Risk Management · Quantitative Finance 2016-09-15 Jonathan Yu-Meng Li

We consider a distributionally robust stochastic optimization problem and formulate it as a stochastic two-level composition optimization problem with the use of the mean--semideviation risk measure. In this setting, we consider a single…

Optimization and Control · Mathematics 2023-06-12 Landi Zhu , Mert Gürbüzbalaban , Andrzej Ruszczyński

We propose a risk measurement approach for a risk-averse stochastic problem. We provide results that guarantee that our problem has a solution. We characterize and explore the properties of the argmin as a risk measure and the minimum as a…

Risk Management · Quantitative Finance 2023-05-09 Marcelo Brutti Righi , Fernanda Maria Müller , Marlon Ruoso Moresco

Generalized variational inference (GVI) provides an optimization-theoretic framework for statistical estimation that encapsulates many traditional estimation procedures. The typical GVI problem is to compute a distribution of parameters…

Optimization and Control · Mathematics 2023-10-27 Aurya S. Javeed , Drew P. Kouri , Thomas M. Surowiec

We continue the study of random continued fraction expansions, generated by random application of the Gauss and the R\'enyi backward continued fraction maps. We show that this random dynamical system admits a unique absolutely continuous…

Dynamical Systems · Mathematics 2021-10-13 Charlene Kalle , Valentin Matache , Masato Tsujii , Evgeny Verbitskiy

We design a recursive measure of voting power based on partial as well as full voting efficacy. Classical measures, by contrast, incorporate solely full efficacy. We motivate our design by representing voting games using a division lattice…

Theoretical Economics · Economics 2022-05-25 Arash Abizadeh , Adrian Vetta

Regular variation of distributional tails is known to be preserved by various linear transformations of some random structures. An inverse problem for regular variation aims at understanding whether the regular variation of a transformed…

Probability · Mathematics 2014-01-23 Ewa Damek , Thomas Mikosch , Jan Rosinski , Gennady Samorodnitsky

In this paper we propose the notion of continuous-time dynamic spectral risk-measure (DSR). Adopting a Poisson random measure setting, we define this class of dynamic coherent risk-measures in terms of certain backward stochastic…

Probability · Mathematics 2017-04-19 Dilip Madan , Martijn Pistorius , Mitja Stadje

We address the problem of sharing risk among agents with preferences modelled by a general class of comonotonic additive and law-based functionals that need not be either monotone or convex. Such functionals are called distortion…

Risk Management · Quantitative Finance 2025-09-12 Jean-Gabriel Lauzier , Liyuan Lin , Ruodu Wang

We introduce a distributional method for learning the optimal policy in risk averse Markov decision process with finite state action spaces, latent costs, and stationary dynamics. We assume sequential observations of states, actions, and…

Machine Learning · Computer Science 2023-03-01 Ziteng Cheng , Sebastian Jaimungal , Nick Martin

The aim of this note is to prove the inversion formula, which can be used to compute the Levi measure of an infinitely divisible distribution from its characteristic function. Obtained formula is similar to the well-known inversion formula…

Probability · Mathematics 2021-03-10 Evgeny Burnaev

Invariant Causal Prediction (Peters et al., 2016) is a technique for out-of-distribution generalization which assumes that some aspects of the data distribution vary across the training set but that the underlying causal mechanisms remain…

Machine Learning · Computer Science 2021-03-30 Elan Rosenfeld , Pradeep Ravikumar , Andrej Risteski

Domain generalization (DG) aims to learn predictive models that can generalize to unseen domains. Most existing DG approaches focus on learning domain-invariant representations under the assumption of conditional distribution shift (i.e.,…

Machine Learning · Computer Science 2026-02-03 Jewon Yeom , Kyubyung Chae , Hyunggyu Lim , Yoonna Oh , Dongyoon Yang , Taesup Kim

We study combinations of risk measures under no restrictive assumption on the set of alternatives. We develop and discuss results regarding the preservation of properties and acceptance sets for the combinations of risk measures. One of the…

Mathematical Finance · Quantitative Finance 2023-05-09 Marcelo Brutti Righi

A significant obstacle in the development of robust machine learning models is covariate shift, a form of distribution shift that occurs when the input distributions of the training and test sets differ while the conditional label…

Machine Learning · Statistics 2021-11-17 Nilesh Tripuraneni , Ben Adlam , Jeffrey Pennington

In this paper, a new decay estimate for a class of stochastic evolution equations with weakly dissipative drifts is established, which directly implies the uniqueness of invariant measures for the corresponding transition semigroups.…

Probability · Mathematics 2021-05-25 Wei Liu , Jonas M. Tölle