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By using large deviation theory that deals with the decay of probabilities of rare events on an exponential scale, we study the longtime behaviors and establish action functionals for scaled Brownian motion and L\'evy processes with…

Dynamical Systems · Mathematics 2019-08-27 Shenglan Yuan , Jinqiao Duan

In this paper, we solve exit problems for a level-dependent L\'evy process which is exponentially killed with a killing intensity that depends on the present state of the process. Moreover, we analyse the respective resolvents. All…

Probability · Mathematics 2025-03-11 Zbigniew Palmowski , Meral Şimşek , Apostolos D. Papaioannou

A new approach to solve the continuous-time stochastic inventory problem using the fluctuation theory of Levy processes is developed. This approach involves the recent developments of the scale function that is capable of expressing many…

Optimization and Control · Mathematics 2016-03-25 Kazutoshi Yamazaki

In this paper, we identify Laplace transforms of occupation times of intervals until first passage times for spectrally negative L\'evy processes. New analytical identities for scale functions are derived and therefore the results are…

Probability · Mathematics 2012-07-09 Ronnie L. Loeffen , Jean-François Renaud , Xiaowen Zhou

In this paper, we develop a new mathematical technique which allows us to express the joint distribution of a Markov process and its running maximum (or minimum) through the marginal distribution of the process itself. This technique is an…

Probability · Mathematics 2015-10-27 Erhan Bayraktar , Sergey Nadtochiy

Let $f$ be the density function associated to a matrix-exponential distribution of parameters $(\alpha, T,s)$. By exponentially tilting $f$, we find a probabilistic interpretation which generalises the one associated to phase-type…

Probability · Mathematics 2021-03-05 Oscar Peralta

We study a Monte Carlo algorithm for simulation of probability distributions based on stochastic step functions, and compare to the traditional Metropolis/Hastings method. Unlike the latter, the step function algorithm can produce an…

Probability · Mathematics 2015-12-07 Torquil Macdonald Sørensen , Fred Espen Benth

Modeling via fractional partial differential equations or a L\'evy process has been an active area of research and has many applications. However, the lack of efficient numerical computation methods for general nonlocal operators impedes…

Numerical Analysis · Mathematics 2018-12-21 Kailai Xu , Eric Darve

In this paper, we derive identities for the upward and downward exit problems and resolvents for a process whose motion changes between two L\'evy processes if it is above (or below) a barrier $b$ and coincides with a Poissonian arrival…

Probability · Mathematics 2026-03-06 Noah Beelders , Lewis Ramsden , Apostolos D. Papaioannou

The main purpose of this chapter is to present some theoretical aspects of parametric estimation of L\'evy processes based on high-frequency sampling, with a focus on infinite activity pure-jump models. Asymptotics for several classes of…

Statistics Theory · Mathematics 2014-09-02 Hiroki Masuda

Self-similar processes are useful in modeling diverse phenomena that exhibit scaling properties. Operator scaling allows a different scale factor in each coordinate. This paper develops practical methods for modeling and simulating…

Probability · Mathematics 2009-12-25 Serge Cohen , Mark M. Meerschaert , Jan Rosinski

We develop the theory of the $W$ and $Z$ scale functions for right-continuous (upwards skip-free) discrete-time discrete-space random walks, along the lines of the analogue theory for spectrally negative L\'evy processes. Notably, we…

Probability · Mathematics 2018-04-17 Florin Avram , Matija Vidmar

In [16], under mild conditions, a Wiener-Hopf type factorization is derived for the exponential functional of proper L\'evy processes. In this paper, we extend this factorization by relaxing a finite moment assumption as well as by…

Probability · Mathematics 2011-07-05 Pierre Patie , Mladen Savov

For a (killed) spectrally negative L\'evy process we provide an analytic expression for the distribution of its overshoot over a fixed level in terms of the infinitesimal generator and the scale function of the process. Our identity…

Probability · Mathematics 2015-05-19 Ronnie Loeffen

This article study the class of distributions obtained by subordinating L\'evy processes and L\'evy bases. To do this we derive properties of a suitable mapping obtained via L\'evy mixing. We show that our results can be used to solve the…

Probability · Mathematics 2015-05-04 Orimar Sauri , E. D. Almut Veraart

For refracted spectrally negative L\'evy processes, we identify expressions of several quantities related to Laplace transforms on their weighted occupation times until first exit times. Such quantities are expressed in terms of unique…

Probability · Mathematics 2019-07-17 Bo Li , Xiaowen Zhou

Diffusing a graph signal at multiple scales requires computing the action of the exponential of several multiples of the Laplacian matrix. We tighten a bound on the approximation error of truncated Chebyshev polynomial approximations of the…

Signal Processing · Electrical Eng. & Systems 2021-05-03 Sibylle Marcotte , Amélie Barbe , Rémi Gribonval , Titouan Vayer , Marc Sebban , Pierre Borgnat , Paulo Gonçalves

We develop a general construction for nonlinear L\'evy processes with given characteristics. More precisely, given a set $\Theta$ of L\'evy triplets, we construct a sublinear expectation on Skorohod space under which the canonical process…

Probability · Mathematics 2015-01-13 Ariel Neufeld , Marcel Nutz

A L\'evy process is said to creep through a curve if, at its first passage time across this curve, the process reaches it with positive probability. We first study this property for bivariate subordinators. Given the graph…

Probability · Mathematics 2022-05-17 Loïc Chaumont , Thomas Pellas

We develop an approach to Malliavin calculus for L\'evy processes from the perspective of expressing a random variable $Y$ by a functional $F$ mapping from the Skorohod space of c\`adl\`ag functions to $\mathbb{R}$, such that $Y=F(X)$ where…

Probability · Mathematics 2014-10-31 Alexander Steinicke