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In this paper, we study an approximation scheme for L\'evy processes with drift in terms of a representation that is akin to the celebrated Mehler formula for L\'evy-Ornstein-Uhlenbeck processes. The approximation scheme is based on a…

Probability · Mathematics 2025-11-25 Max Nendel

Simulated and parallel tempering are families of Markov Chain Monte Carlo algorithms where a temperature parameter is varied during the simulation to overcome bottlenecks to convergence due to multimodality. In this work we introduce and…

Discrete Mathematics · Computer Science 2016-07-20 Nayantara Bhatnagar , Dana Randall

Subordinators are infinitely divisible distributions on the positive half-line. They are often used as mixing distributions in Poisson mixtures. We show that appropriately scaled Poisson mixtures can approximate the mixing subordinator and…

Probability · Mathematics 2024-09-17 Michael Grabchak , Sina Saba

Using the concept of self-decomposable subordinators introduced in Gardini et al. [11], we build a new bivariate Normal Inverse Gaussian process that can capture stochastic delays. In addition, we also develop a novel path simulation scheme…

Computational Finance · Quantitative Finance 2020-11-10 Matteo Gardini , Piergiacomo Sabino , Emanuela Sasso

It is known that the exponential functional of a Poisson process admits a probability density function in the form of an infinite series. In this paper, we obtain an explicit expression for the density function of the exponential functional…

Probability · Mathematics 2025-09-25 Dongdong Hu , Hasanjan Sayit , Weixuan Xia

We investigate exponential stock models driven by tempered stable processes, which constitute a rich family of purely discontinuous L\'{e}vy processes. With a view of option pricing, we provide a systematic analysis of the existence of…

Mathematical Finance · Quantitative Finance 2025-11-21 Uwe Küchler , Stefan Tappe

In the paper, multivariate probability distributions are considered that are representable as scale mixtures of multivariate elliptically contoured stable distributions. It is demonstrated that these distributions form a special subclass of…

Probability · Mathematics 2019-12-05 Victor Korolev , Alexander Zeifman

We consider two fractional versions of a family of nonnegative integer valued processes. We prove that their probability mass functions solve fractional Kolmogorov forward equations, and we show the overdispersion of these processes. As…

Probability · Mathematics 2013-03-13 Luisa Beghin , Claudio Macci

We develop a scale-invariant truncated L\'evy (STL) process to describe physical systems characterized by correlated stochastic variables. The STL process exhibits L\'evy stability for the probability density, and hence shows scaling…

Statistical Mechanics · Physics 2009-10-31 Boris Podobnik , Plamen Ch. Ivanov , Youngki Lee , H. Eugene Stanley

In this paper, we are concerned with the representation of an important sublinear expectation under which framework a new stochastic process G-L\'evy process has been introduced. We show the existence of a weakly compact family of…

Probability · Mathematics 2011-11-07 Liying Ren

In this paper, three topics on semi-selfdecomposable distributions are studied. The first one is to characterize semi-selfdecomposable distributions by stochastic integrals with respect to Levy processes. This characterization defines a…

Probability · Mathematics 2009-11-19 Makoto Maejima , Yohei Ueda

Motivated by Alain-Sol Sznitman's interlacement process, we consider the set of $\{0,1\}$-valued processes which can be constructed in an analogous way, namely as a union of sets coming from a Poisson process on a collection of sets. Our…

Probability · Mathematics 2025-06-03 Malin P. Forsström , Nina Gantert , Jeffrey E. Steif

We define a time-changed fractional Ornstein-Uhlenbeck process by composing a fractional Ornstein-Uhlenbeck process with the inverse of a subordinator. Properties of the moments of such process are investigated and the existence of the…

Probability · Mathematics 2020-04-30 Giacomo Ascione , Yuliya Mishura , Enrica Pirozzi

There exist only a few known examples of subordinators for which the transition probability density can be computed explicitly along side an expression for its L\'evy measure and Laplace exponent. Such examples are useful in several areas…

Probability · Mathematics 2016-11-25 James Burridge , Mateusz Kwaśnicki , Alexey Kuznetsov , Andreas Kyprianou

We study one-dimensional Levy processes with Levy-Khintchine exponent psi(xi^2), where psi is a complete Bernstein function. These processes are subordinate Brownian motions corresponding to subordinators, whose Levy measure has completely…

Probability · Mathematics 2011-12-08 Mateusz Kwasnicki

We study properties of the (generalized) Dickman distribution with two parameters and the stationary solution of the Ornstein-Uhlenbeck stochastic differential equation driven by a Poisson process. In particular, we show that the marginal…

Probability · Mathematics 2025-06-19 Danijel Grahovac , Anastasiia Kovtun , Nikolai N. Leonenko , Andrey Pepelyshev

In this paper, we deal with a class of reflected backward stochastic differential equations associated to the subdifferential operator of a lower semi-continuous convex function driven by Teugels martingales associated with L\'{e}vy…

Probability · Mathematics 2015-05-13 Yong Ren , Xiliang Fan

Starting from inhomogeneous time scaling and linear decorrelation between successive price returns, Baldovin and Stella recently proposed a way to build a model describing the time evolution of a financial index. We first make it fully…

Data Analysis, Statistics and Probability · Physics 2009-09-29 Damien Challet , Pier Paolo Peirano

Univariate superpositions of Ornstein--Uhlenbeck-type processes (OU), called supOU processes, provide a class of continuous time processes capable of exhibiting long memory behavior. This paper introduces multivariate supOU processes and…

Probability · Mathematics 2011-01-04 Ole Eiler Barndorff-Nielsen , Robert Stelzer

We use a noncommutative generalization of Fourier analysis to define a broad class of pseudo-probability representations, which includes the known bosonic and discrete Wigner functions. We characterize the groups of quantum unitary…

Mathematical Physics · Physics 2020-05-19 Sang Jun Park , Cedric Beny , Hun Hee Lee