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The goal of this paper is to clarify when a semilinear stochastic partial differential equation driven by L\'evy processes admits an affine realization. Our results are accompanied by several examples arising in natural sciences and…

Probability · Mathematics 2025-11-21 Stefan Tappe

In this paper we study time-inhomogeneous affine processes beyond the common assumption of stochastic continuity. In this setting times of jumps can be both inaccessible and predictable. To this end we develop a general theory of finite…

Probability · Mathematics 2018-12-21 Martin Keller-Ressel , Thorsten Schmidt , Robert Wardenga

This thesis is devoted to the study of affine processes and their applications in financial mathematics. In the first part we consider the theory of time-inhomogeneous affine processes on general state spaces. We present a concise setup for…

Pricing of Securities · Quantitative Finance 2015-12-11 Stefan Waldenberger

We propose an alternative approach on the existence of affine realizations for HJM interest rate models. It is applicable to a wide class of models, and simultaneously it is conceptually rather comprehensible. We also supplement some known…

Probability · Mathematics 2019-07-17 Stefan Tappe

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

Fractional processes have gained popularity in financial modeling due to the dependence structure of their increments and the roughness of their sample paths. The non-Markovianity of these processes gives, however, rise to conceptual and…

Mathematical Finance · Quantitative Finance 2018-02-07 Philipp Harms , David Stefanovits

We revisit affine diffusion processes on general and on the canonical state space in particular. A detailed study of theoretic and applied aspects of this class of Markov processes is given. In particular, we derive admissibility conditions…

Probability · Mathematics 2009-10-10 Damir Filipovic , Eberhard Mayerhofer

Multivariate process satisfying affine stochastic recurrence equation with generic diagonal matrices is considered. We prove that the stationary solution is regularly varying. The results are applicable to diagonal autoregressive models.

Probability · Mathematics 2022-06-28 Ewa Damek

The goal of this paper is to clarify when the solutions to stochastic partial differential equations stay close to a given subset of the state space for starting points which are close as well. This includes results for deterministic…

Probability · Mathematics 2024-10-10 Toshiyuki Nakayama , Stefan Tappe

We show that stochastically continuous, time-homogeneous affine processes on the canonical state space $\Rplus^m \times \RR^n$ are always regular. In the paper of \citet{Duffie2003} regularity was used as a crucial basic assumption. It was…

Probability · Mathematics 2010-02-12 Martin Keller-Ressel , Walter Schachermayer , Josef Teichmann

We provide a new proof for regularity of affine processes on general state spaces by methods from the theory of Markovian semimartingales. On the way to this result we also show that the definition of an affine process, namely as…

Probability · Mathematics 2013-01-17 Christa Cuchiero , Josef Teichmann

This paper studies the large fluctuations of solutions of finite--dimensional affine stochastic neutral functional differential equations with finite memory, as well as related nonlinear equations. We find conditions under which the exact…

Probability · Mathematics 2013-10-10 John A. D. Appleby , Huizhong Appleby-Wu , Xuerong Mao

Some problems in the theory and applications of stochastic processes can be reduced to solving integral equations. While explicit solutions for these equations are often elusive, valuable insights can be gained through their asymptotic…

Probability · Mathematics 2024-11-28 P. Chigansky , M. Kleptsyna

We identify the stochastic processes associated with one-sided fractional partial differential equations on a bounded domain with various boundary conditions. This is essential for modelling using spatial fractional derivatives. We show…

Analysis of PDEs · Mathematics 2017-12-15 Boris Baeumer , Mihály Kovács , Harish Sankaranarayanan

This paper studies the existence and global stability of generalized Ornstein-Uhlenbeck process for affine stochastic functional differential equations. Various very basic and important properties are established. In the applications, we…

Dynamical Systems · Mathematics 2025-08-14 Xiang Lv

Affine point processes are a class of simple point processes with self- and mutually-exciting properties, and they have found useful applications in several areas. In this paper, we obtain large-time asymptotic expansions in large…

Probability · Mathematics 2019-07-26 Xuefeng Gao , Lingjiong Zhu

We consider the transformations of quantum states obtainable by a process of the following sort. Combine the given input state with a specially prepared initial state of an auxiliary system. Apply a unitary transformation to the combined…

Quantum Physics · Physics 2015-10-13 Andreas Blass , Yuri Gurevich

We put forward a complete theory on moment explosion for fairly general state-spaces. This includes a characterization of the validity of the affine transform formula in terms of minimal solutions of a system of generalized Riccati…

Probability · Mathematics 2016-01-07 Eberhard Mayerhofer

A stochastic affine evolution equation with bilinear noise term is studied where the driving process is a real-valued fractional Brownian motion. Stochastic integration is understood in the Skorokhod sense. Existence and uniqueness of weak…

Probability · Mathematics 2017-04-13 Bohdan Maslowski , Jana Šnupárková

This work is devoted to the study of conservative affine processes on the canonical state space $D = $R_+^m \times \R^n$, where $m + n > 0$. We show that each affine process can be obtained as the pathwise unique strong solution to a…

Probability · Mathematics 2022-03-17 Martin Friesen , Peng Jin , Barbara Rüdiger
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