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Related papers: L\'evy models amenable to efficient calculations

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We consider a multivariate L\'evy process where the first coordinate is a L\'evy process with no negative jumps which is not a subordinator and the others are nondecreasing. We determine the Laplace-Stieltjes transform of the steady-state…

Probability · Mathematics 2020-11-25 Offer Kella , Onno Boxma

In this paper we study general nonlinear stochastic differential equations, where the usual Brownian motion is replaced by a L\'evy process. We also suppose that the coefficient multiplying the increments of this process is merely Lipschitz…

Probability · Mathematics 2007-07-19 Benjamin Jourdain , Sylvie Méléard , Wojbor Woyczynski

Using the Wiener-Hopf factorization, it is shown that it is possible to bound the path of an arbitrary Levy process above and below by the paths of two random walks. These walks have the same step distribution, but different random starting…

Probability · Mathematics 2007-05-23 R. A. Doney

A dynamical model based on a continuous addition of colored shot noises is presented. The resulting process is colored and non-Gaussian. A general expression for the characteristic function of the process is obtained, which, after a scaling…

Statistical Mechanics · Physics 2009-10-31 Jaume Masoliver , Miquel Montero , Alan McKane

Characteristic functions of several popular classes of distributions and processes admit analytic continuation into unions of strips and open coni around $\mathbb{R}\subset \mathbb{C}$. The Fourier transform techniques reduces calculation…

Computational Finance · Quantitative Finance 2018-08-17 Svetlana Boyarchenko , Sergei Levendorskiĭ

L\'evy processes are widely used in financial mathematics to model return data. Price processes are then defined as a corresponding geometric L\'evy process, implying the fact that returns are independent. In this paper we propose an…

Statistics Theory · Mathematics 2013-02-22 L. Gerencsér , M. Mánfay

We consider some special classes of L\'evy processes with no gaussian component whose L\'evy measure is of the type $\pi(dx)=e^{\gamma x}\nu(e^x-1) dx$, where $\nu$ is the density of the stable L\'evy measure and $\gamma$ is a positive…

Probability · Mathematics 2007-08-20 Loic Chaumont , Andreas Kyprianou , Juan Carlos Pardo Millan

We consider the problem of determining the L\'evy exponent in a L\'evy model for asset prices given the price data of derivatives. The model, formulated under the real-world measure $\mathbb P$, consists of a pricing kernel…

Mathematical Finance · Quantitative Finance 2019-02-15 George Bouzianis , Lane Hughston

In this paper, we study the existence of the transition densities of one-dimensional L\'evy processes. Compared with past results, our results contain the L\'evy processes whose L\'evy symbols have logarithm behavior at infinity. Our…

Probability · Mathematics 2015-02-11 Tongkeun Chang

By killing a stable L\'{e}vy process when it leaves the positive half-line, or by conditioning it to stay positive, or by conditioning it to hit 0 continuously, we obtain three different positive self-similar Markov processes which…

Probability · Mathematics 2016-08-16 Maria Emilia Caballero , Loïc Chaumont

We establish a new connection between the class of Nevanlinna-Pick functions and the one of the exponents associated to spectrally negative L\'evy processes. As a consequence, we compute the characteristics related to some hyperbolic…

Probability · Mathematics 2021-09-08 Wissem Jedidi , Zbigniew J. Jurek , Nuha Taymani

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

We provide a large class of functions $f$ that are bell-shaped: the $n$-th derivative of $f$ changes its sign exactly $n$ times. This class is described by means of Stieltjes-type representation of the logarithm of the Fourier transform of…

Classical Analysis and ODEs · Mathematics 2018-11-28 Mateusz Kwaśnicki

We consider a stochastic volatility model with L\'evy jumps for a log-return process $Z=(Z_{t})_{t\geq 0}$ of the form $Z=U+X$, where $U=(U_{t})_{t\geq 0}$ is a classical stochastic volatility process and $X=(X_{t})_{t\geq 0}$ is an…

Pricing of Securities · Quantitative Finance 2012-02-23 J. E. Figueroa-López , R. Gong , C. Houdré

We consider a class of L\'evy-type processes on which spectral analysis technics can be made to produce optimal results, in particular for the decay rate of their survival probability and for the spectral gap of their ground state…

Probability · Mathematics 2023-06-30 Grégoire Véchambre

We present a satisfactory definition of the important class of L\'evy processes indexed by a general collection of sets. We use a new definition for increment stationarity of set-indexed processes to obtain different characterizations of…

Probability · Mathematics 2012-01-25 Erick Herbin , Ely Merzbach

We study the Wiener-Hopf factorization for L\'evy processes $X_t$ with completely monotone jumps. Extending previous results of L.C.G. Rogers, we prove that the space-time Wiener-Hopf factors are complete Bernstein functions of both the…

Probability · Mathematics 2018-11-19 Mateusz Kwaśnicki

We consider the set of Stieltjes moment sequences, for which every positive power is again a Stieltjes moment sequence, we and prove an integral representation of the logarithm of the moment sequence in analogy to the L\'evy-Khinchin…

Classical Analysis and ODEs · Mathematics 2007-05-23 Christian Berg

Ornstein-Uhlenbeck processes driven by general L\'{e}vy process are considered in this paper. We derive strongly consistent estimators for the moments of the underlying L\'{e}vy process and for the mean reverting parameter of the…

Probability · Mathematics 2010-11-30 Konstantinos Spiliopoulos

We present an existence result for L\'evy-type processes which requires only weak regularity assumptions on the symbol $q(x,\xi)$ with respect to the space variable $x$. Applications range from existence and uniqueness results for…

Probability · Mathematics 2019-02-18 Franziska Kühn