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In this paper we extend the notion of ``filtration-consistent nonlinear expectation" (or "${\cal F}$-consistent nonlinear expectation") to the case when it is allowed to be dominated by a $g$-expectation that may have a quadratic growth. We…

Probability · Mathematics 2007-05-23 Ying Hu , Jin Ma , Shige Peng , Song Yao

For a general Multidimensional L\'{e}vy process (satisfying some moment conditions), we introduce the Multidimensional power jump processes and the related Multidimensional Teugels martingales. Furthermore, we orthogonalize the…

Probability · Mathematics 2011-11-02 Jianzhong Lin

Our main result is the martingale representations for Markov additive processes where the modulator is a Levy process. These processes have three parts: the modulator, the jumps of the ordinate triggered by the modulator, and the…

Probability · Mathematics 2025-12-09 Celal Umut Yaran , Mine Çağlar

We derive the explicit form of the martingale representation for square-integrable processes that are martingales with respect to the natural filtration of the super-Brownian motion. This is done by using a weak extension of the Dupire…

Probability · Mathematics 2021-04-29 Christian Mandler , Ludger Overbeck

We show that a discrete time martingale with respect to a filtration with atomless innovations is the (infinite) sum of martingales with independent increments. For the continuous time filtration coming from Brownian Motion filtration, we…

Probability · Mathematics 2024-12-09 Freddy Delbaen

We study class of L\'{e}vy processes having distributions being indentifiable by moments. We define system of polynomial martingales \newline $\left\{ M_{n}(X_{t},t),\mathcal{F}_{\leq t}\right\} _{n\geq 1},$ where $% \mathcal{F}_{\leq t}$…

Probability · Mathematics 2014-03-18 Paweł J. Szabłowski

Our financial setting consists of a market model with two flows of information. The smallest flow F is the "public" flow of information which is available to all agents, while the larger flow G has additional information about the…

Mathematical Finance · Quantitative Finance 2022-11-16 Tahir Choulli , Ferdoos Alharbi

In this paper we prove that every random variable of the form $F(M_T)$ with $F:\real^d \to\real$ a Borelian map and $M$ a $d$-dimensional continuous Markov martingale with respect to a Markov filtration $\mathcal{F}$ admits an exact…

Probability · Mathematics 2011-08-22 Anthony Reveillac

The paper studies thin times which are random times whose graph is contained in a countable union of the graphs of stopping times with respect to a reference filtration $\mathbb F$. We show that a generic random time can be decomposed into…

Probability · Mathematics 2018-04-06 Anna Aksamit , Tahir Choulli , Monique Jeanblanc

We develop the mathematics of a filtration shrinkage model that has recently been considered in the credit risk modeling literature. Given a finite collection of points $x_1<...<x_N$ in $\mathbb{R}$, the region indicator function $R(x)$…

Probability · Mathematics 2009-09-29 A. Deniz Sezer

In this paper we explore the fundamentals of the Martingale Representation Theorem (MRT) and a closely related result, the Clark-Ocone formula. We also investigate how far these theorems can be taken, notably beyond the regular Sobolev…

Probability · Mathematics 2013-06-25 Deborah Schneider-Luftman

We show that, under certain smoothness conditions, a Brownian martingale at a fixed time can be represented as an exponential of its value at a later time. The time-dependent generator of this exponential operator is equal to one half times…

Probability · Mathematics 2015-11-06 Henry Schellhorn

In this paper we study progressive filtration expansions with random times. We show how semimartingale decompositions in the expanded filtration can be obtained using a natural link between progressive and initial expansions. The link is,…

Probability · Mathematics 2016-11-25 Younes Kchia , Martin Larsson , Philip Protter

Let $(W,H,\mu)$ be the classical Wiener space on $\R^d$. Assume that $X=(X_t)$ is a diffusion process satisfying the stochastic differential equation $dX_t=\sigma(t,X)dB_t+b(t,X)dt$, where $\sigma:[0,1]\times C([0,1],\R^n)\to \R^n\otimes…

Probability · Mathematics 2019-01-09 Ali Süleyman Üstünel

We study Fourier multipliers resulting from martingale transforms of general L\'evy processes.

Probability · Mathematics 2011-04-19 Rodrigo Bañuelos , Adam Bielaszewski , Krzysztof Bogdan

By making use of martingale representations, we derive the asymptotic normality of particle filters in hidden Markov models and a relatively simple formula for their asymptotic variances. Although repeated resamplings result in complicated…

Statistics Theory · Mathematics 2013-12-19 Hock Peng Chan , Tze Leung Lai

This paper considers the nonlinear theory of G-martingales as introduced by Peng. A martingale representation theorem for this theory is proved by using the techniques and the results established in an accompanying paper for the second…

Probability · Mathematics 2013-06-18 H. M. Soner , N. Touzi , J. Zhang

This paper addresses reflected backward stochastic differential equations (RBSDE hereafter) that take the form of \begin{eqnarray*} \begin{cases} dY_t=f(t,Y_t, Z_t)d(t\wedge\tau)+Z_tdW_t^{\tau}+dM_t-dK_t,\quad Y_{\tau}=\xi, Y\geq…

Probability · Mathematics 2021-07-27 Safa Alsheyab , Tahir Choulli

This paper constructs a class of martingale transforms based on L\'evy processes on Lie groups. From these, a natural class of bounded linear operators on the $L^p$-spaces of the group (with respect to Haar measure) for $1<p<\infty$, are…

Probability · Mathematics 2012-06-08 David Applebaum , Rodrigo Bañuelos

The paper considers the martingale theory in the $G$-framework. A form of Doob's optional sampling is established, which allows to prove the exact analogue of the classical maximal inequality. The obtained results are used to improve the…

Probability · Mathematics 2012-11-28 Krzysztof Paczka