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Observing prices of European put and call options, we calibrate exponential L\'evy models nonparametrically. We discuss the efficient implementation of the spectral estimation procedures for L\'evy models of finite jump activity as well as…

Pricing of Securities · Quantitative Finance 2020-06-12 Jakob Söhl , Mathias Trabs

There is an abundance of useful fluctuation identities for one-sided L\'evy processes observed up to an independent exponentially distributed time horizon. We show that all the fundamental formulas generalize to time horizons having matrix…

Probability · Mathematics 2021-01-21 Mogens Bladt , Jevgenijs Ivanovs

We discuss diffusion properties of a dynamical system, which is characterised by long-tail distributions and finite correlations. The particle velocity has the stable L\'evy distribution; it is assumed as a jumping process (the kangaroo…

Statistical Mechanics · Physics 2011-06-21 Tomasz Srokowski

In this paper, we establish the existence of moments and moment estimates for L\'evy-type processes. We discuss whether the existence of moments is a time dependent distributional property, give sufficient conditions for the existence of…

Probability · Mathematics 2017-02-09 Franziska Kühn

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

We obtain series expansions of the $q$-scale functions of arbitrary spectrally negative L\'evy processes, including processes with infinite jump activity, and use these to derive various new examples of explicit $q$-scale functions.…

Probability · Mathematics 2022-03-08 Anita Behme , David Oechsler , René L. Schilling

Given an It\=o semimartingale with a time-homogeneous jump part observed at high frequency, we prove weak convergence of a normalized truncated empirical distribution function of the L\'evy measure to a Gaussian process. In contrast to…

Statistics Theory · Mathematics 2015-06-25 Michael Hoffmann , Mathias Vetter

Existing results for the estimation of the L\'evy measure are mostly limited to the onedimensional setting. We apply the spectral method to multidimensional L\'evy processes in order to construct a nonparametric estimator for the…

Statistics Theory · Mathematics 2023-05-24 Maximilian F. Steffen

We consider a wide class of increasing L\'evy processes perturbed by an independent Brownian motion as a degradation model. Such family contains almost all classical degradation models considered in the literature. Classically failure time…

Probability · Mathematics 2012-01-06 Christian Paroissin , Landy Rabehasaina

Many real time-series exhibit behavior adequate to long range dependent data. Additionally very often these time-series have constant time periods and also have characteristics similar to Gaussian processes although they are not Gaussian.…

Data Analysis, Statistics and Probability · Physics 2017-01-04 A. Kumar , A. Wyłomańska , R. Połoczański , S. Sundar

We describe basic motivations behind quantum or noncommutative probability, introduce quantum L\'evy processes on compact quantum groups, and discuss several aspects of the study of the latter in the example of quantum permutation groups.…

Quantum Algebra · Mathematics 2016-09-29 Uwe Franz , Anna Kula , Adam Skalski

We study the quantum walk subjected to measurements with a L\'evy waiting-time distribution. We find that the system has a sub-ballistic behavior instead of a diffusive one. We obtain an analytical expression for the exponent of the power…

Quantum Physics · Physics 2009-11-13 Alejandro Romanelli

The continuous time random walk model has been widely applied in various fields, including physics, biology, chemistry, finance, social phenomena, etc. In this work, we present an algorithm that utilizes a subordinate formula to generate…

Statistical Mechanics · Physics 2024-09-10 Danhua Jiang , Yuanze Hong , Wanli Wang

A refracted L\'evy process is a L\'evy process whose dynamics change by subtracting off a fixed linear drift (of suitable size) whenever the aggregate process is above a pre-specified level. More precisely, whenever it exists, a refracted…

Probability · Mathematics 2012-05-04 Andreas E. Kyprianou , J. C. Pardo , J. L. Pérez

In this paper, we present new results on Hunt's hypothesis (H) for L\'{e}vy processes. We start with a comparison result on L\'{e}vy processes which implies that big jumps have no effect on the validity of (H). Based on this result and the…

Probability · Mathematics 2015-03-03 Ze-Chun Hu , Wei Sun , Jing Zhang

We analyze a specific class of random systems that are driven by a symmetric L\'{e}vy stable noise. In view of the L\'{e}vy noise sensitivity to the confining "potential landscape" where jumps take place (in other words, to environmental…

Statistical Mechanics · Physics 2015-06-11 M. Zaba , P. Garbaczewski , V. Stephanovich

The space-fractional and the time-fractional Poisson processes are two well-known models of fractional evolution. They can be constructed as standard Poisson processes with the time variable replaced by a stable subordinator and its…

Probability · Mathematics 2016-08-09 Luisa Beghin , Costantino Ricciuti

We study sample-path large deviations for L\'evy processes and random walks with heavy-tailed jump-size distributions that are of Weibull type. Our main results include an extended form of an LDP (large deviations principle) in the $J_1$…

Probability · Mathematics 2019-12-06 Mihail Bazhba , Jose Blanchet , Chang-Han Rhee , Bert Zwart

We give necessary and sufficient conditions guaranteeing that the coupling for L\'evy processes (with non-degenerate jump part) is successful. Our method relies on explicit formulae for the transition semigroup of a compound Poisson process…

Probability · Mathematics 2015-05-19 René L. Schilling , Jian Wang

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
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