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Stochastic processes find applications in modelling systems in a variety of disciplines. A large number of stochastic models considered are Markovian in nature. It is often observed that higher order Markov processes can model the data…

Probability · Mathematics 2021-04-13 Suryadeepto Nag

Many biological systems are governed by difference equations and exhibit discrete-time dynamics. Examples include the size of a population when generations are non-overlapping, and the incidence of a disease when infections are recorded at…

Populations and Evolution · Quantitative Biology 2025-09-25 Shuyun Jiao , David Waxman

Motivated by liquidity risk in mathematical finance, D. Lacker introduced concentration inequalities for risk measures, i.e. upper bounds on the \emph{liquidity risk profile} of a financial loss. We derive these inequalities in the case of…

Risk Management · Quantitative Finance 2018-05-24 Ludovic Tangpi

Many real-world processes are trajectories that may be regarded as continuous-time "functional data". Examples include patients' biomarker concentrations, environmental pollutant levels, and prices of stocks. Corresponding advances in data…

Statistics Theory · Mathematics 2022-11-30 Jinghao Sun , Forrest W. Crawford

The aim of this paper is to study an optimal stopping problem for dynamic risk measures induced by backward stochastic differential equations with jumps and delayed generator. Firstly, we connect the value function of this problem to…

Probability · Mathematics 2021-10-06 Tuo Navegue , Auguste Aman

In this paper, we introduce a new method for study on backward stochastic differential equations with stopping time as time horizon. And using this, we show that some results on backward stochastic differential equations with constant time…

Probability · Mathematics 2013-08-30 Mun-Chol Kim , Chol-Kyu Pak

Equivalent characterizations of multiportfolio time consistency are deduced for closed convex and coherent set-valued risk measures on $L^p(\Omega,\mathcal F, P; R^d)$ with image space in the power set of $L^p(\Omega,\mathcal F_t,P;R^d)$.…

Risk Management · Quantitative Finance 2017-01-27 Zachary Feinstein , Birgit Rudloff

Time-to-event data are often recorded on a discrete scale with multiple, competing risks as potential causes for the event. In this context, application of continuous survival analysis methods with a single risk suffer from biased…

Methodology · Statistics 2024-08-14 Willem van den Boom , Maria De Iorio , Fang Qian , Alessandra Guglielmi

We study the use of Temporal-Difference learning for estimating the structural parameters in dynamic discrete choice models. Our algorithms are based on the conditional choice probability approach but use functional approximations to…

Econometrics · Economics 2022-12-23 Karun Adusumilli , Dita Eckardt

The sequential treatment decisions made by physicians to treat chronic diseases are formalized in the statistical literature as dynamic treatment regimes. To date, methods for dynamic treatment regimes have been developed under the…

Methodology · Statistics 2022-02-22 Janie Coulombe , Erica E. M. Moodie , Susan M. Shortreed , Christel Renoux

The generalization performance of a risk prediction model can be evaluated by its calibration, which measures the agreement between predicted and observed outcomes on external validation data. Here, methods for assessing the calibration of…

Methodology · Statistics 2020-01-31 Moritz Berger , Matthias Schmid

We give an axiomatic framework for conditional generalized deviation measures. Under financially reasonable assumptions, we give the correspondence between conditional coherent risk measures and generalized deviation measures. Moreover, we…

Risk Management · Quantitative Finance 2023-02-21 Guangyan Jia , Mengjin Zhao

We investigate the test risk of continuous-time stochastic gradient flow dynamics in learning theory. Using a path integral formulation we provide, in the regime of a small learning rate, a general formula for computing the difference…

Machine Learning · Statistics 2025-03-05 Rodrigo Veiga , Anastasia Remizova , Nicolas Macris

The multivariate conditional probability distribution models the effects of a set of variables onto the statistical properties of another set of variables. In the study of systemic risk in a financial system, the multivariate conditional…

Risk Management · Quantitative Finance 2021-05-05 Tomaso Aste

This paper introduces an innovative framework for the periodic evaluation of defined-contribution pension funds. The performance of the pension fund is evaluated not only at retirement, but also within the interim periods. In contrast to…

Risk Management · Quantitative Finance 2025-08-08 Wanting He , Wenyuan Li , Yunran Wei

In this paper we extend temporal difference policy evaluation algorithms to performance criteria that include the variance of the cumulative reward. Such criteria are useful for risk management, and are important in domains such as finance…

Machine Learning · Computer Science 2013-10-15 Aviv Tamar , Dotan Di Castro , Shie Mannor

Complex systems are often characterized by the interplay of multiple interconnected dynamical processes operating across a range of temporal scales. This phenomenon is widespread in both biological and artificial scenarios, making it…

Statistical Mechanics · Physics 2025-09-08 Giorgio Nicoletti , Daniel M. Busiello

Since the introduction of the Black-Scholes model stochastic processes have played an increasingly important role in mathematical finance. In many cases prices, volatility and other quantities can be modeled using stochastic ordinary…

Data Analysis, Statistics and Probability · Physics 2007-05-23 Yin Mei Wong , Joshua Wilkie

We revisit the problem of computing (robust) controlled invariant sets for discrete-time linear systems. Departing from previous approaches, we consider implicit, rather than explicit, representations for controlled invariant sets.…

Optimization and Control · Mathematics 2022-08-10 Tzanis Anevlavis , Zexiang Liu , Necmiye Ozay , Paulo Tabuada

We address a class of backward stochastic differential equations on a bounded interval, where the driving noise is a marked, or multivariate, point process. Assuming that the jump times are totally inaccessible and a technical condition…

Probability · Mathematics 2016-06-28 Fulvia Confortola , Marco Fuhrman , Jean Jacod