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Probability functions appear in constraints of many optimization problems in practice and have become quite popular. Understanding their first-order properties has proven useful, not only theoretically but also in implementable algorithms,…

Optimization and Control · Mathematics 2023-04-21 Wim van Ackooij , Pedro Pérez-Aros , Claudia Soto

The goal of this paper is to solve a class of stochastic optimal control problems numerically, in which the state process is governed by an It\^o type stochastic differential equation with control process entering both in the drift and the…

Optimization and Control · Mathematics 2020-06-05 Richard Archibald , Feng Bao , Jiongmin Yong , Tao Zhou

We present a condition for a stochastic differential equation dX_{t}={\mu}(t,X_{t})dt+{\sigma}(t,X_{t})dB_{t} to have a unique functional solution of the form Z(t,B_{t}). The condition expresses a relation between {\mu} and {\sigma}. A…

Probability · Mathematics 2012-09-05 Imme van den Berg

A cylindrical Levy process does not enjoy a cylindrical version of the semi-martingale decomposition which results in the need to develop a completely novel approach to stochastic integration. In this work, we introduce a stochastic…

Probability · Mathematics 2016-08-25 Adam Jakubowski , Markus Riedle

We prove the It\^o-Wentzell formula for processes with values in the space of generalized functions by using the stochastic Fubini theorem and the It\^o-Wentzell formula for real-valued processes, appropriate versions of which are also…

Probability · Mathematics 2009-07-15 N. V. Krylov

These lectures notes aim at introducing L\'{e}vy processes in an informal and intuitive way, accessible to non-specialists in the field. In the first part, we focus on the theory of L\'{e}vy processes. We analyze a `toy' example of a…

Pricing of Securities · Quantitative Finance 2008-12-02 Antonis Papapantoleon

In a work of van Gaans (2005a) stochastic integrals are regarded as $L^2$-curves. In Filipovi\'{c} and Tappe (2008) we have shown the connection to the usual It\^o-integral for c\`adl\`ag-integrands. The goal of this note is to complete…

Probability · Mathematics 2025-11-21 Stefan Tappe

In the present paper, we obtain an explicit product formula for products of multiple integrals w.r.t. a random measure associated with a L\'evy process. As a building block, we use a representation formula for products of martingales from a…

Probability · Mathematics 2023-09-21 Paolo Di Tella , Christel Geiss , Alexander Steinicke

Non-Markovian stochastic Langevin-like equations of motion are compared to their corresponding Markovian (local) approximations. The validity of the local approximation for these equations, when contrasted with the fully nonlocal ones, is…

Statistical Mechanics · Physics 2009-12-23 R. L. S. Farias , Rudnei O. Ramos , L. A. da Silva

For a L\'evy process $\xi=(\xi_t)_{t\geq0}$ drifting to $-\infty$, we define the so-called exponential functional as follows \[{\rm{I}}_{\xi}=\int_0^{\infty}e^{\xi_t} dt.\] Under mild conditions on $\xi$, we show that the following…

Probability · Mathematics 2014-02-26 Pierre Patie , Juan Carlos Pardo Milan , Mladen Savov

We consider a forager diffusing via a fractional heat equation and we introduce several efficiency functionals whose optimality is discussed in relation to the L\'evy exponent of the evolution equation. Several biological scenarios, such as…

Analysis of PDEs · Mathematics 2022-07-21 Serena Dipierro , Giovanni Giacomin , Enrico Valdinoci

We consider an Ito stochastic differential equation with delay, driven by brownian motion, whose solution, by an appropriate reformulation, defines a Markov process $X$ with values in a space of continuous functions $\mathbf C$, with…

Probability · Mathematics 2013-04-10 Marco Fuhrman , Federica Masiero , Gianmario Tessitore

We derive a product formula for the multiple stochastic integrals with respect to Levy process. The idea is to use exponential vectors and the polarization technique which greatly simplify the argument.

Probability · Mathematics 2020-06-26 Nishant Agrawal , Yaozhong Hu , Neha Sharma

We prove change of variables formulas [It\^o formulas] for functions of both arithmetic and geometric averages of geometric fractional Brownian motion. They are valid for all convex functions, not only for smooth ones. These change of…

Probability · Mathematics 2011-09-02 Heikki Tikanmäki

The functional derivative of the effective action with respect to an external field is part of the equation of motion of this field if one-loop effects induced by quantum fluctuations or thermal fluctuations are included when minimizing the…

High Energy Physics - Phenomenology · Physics 2016-09-01 J. Baacke , A. Suerig

We introduce a variational theory for processes adapted to the multi-dimensional Brownian motion filtration. The theory provides a differential structure which describes the infinitesimal evolution of Wiener functionals at very small…

Probability · Mathematics 2017-07-13 Alberto Ohashi , Dorival Leão , Alexandre B. Simas

People employ the function-on-function regression to model the relationship between two random curves. Fitting this model, widely used strategies include algorithms falling into the framework of functional partial least squares (typically…

Methodology · Statistics 2021-02-12 Zhiyang Zhou

In this paper, we obtain explicit product and moment formulas for products of iterated integrals generated by families of square integrable martingales associated with an arbitrary L\'evy process. We propose a new approach applying the…

Probability · Mathematics 2018-09-04 Paolo Di Tella , Christel Geiss

In this document, we present another perspective for the calculus of optimal geometrical primitives and functions according to the centrality requirements. The shortest paths expressed in spatial and temporal domains are studied. We show…

Optimization and Control · Mathematics 2023-02-14 Djemel Ziou

Bardina and Jolis [Stochastic process. Appl. 69 (1997) 83--109] prove an extension of It\^{o}'s formula for $F(X_t,t)$, where $F(x,t)$ has a locally square-integrable derivative in $x$ that satisfies a mild continuity condition in $t$ and…

Probability · Mathematics 2009-09-29 Xavier Bardina , Carles Rovira