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We apply the theory of linear recurrence sequences to find an expression for the ultimate ruin probability in a discrete-time risk process. We assume the claims follow an arbitrary distribution with support $\{0,1,\ldots,m\}$, for some…

Probability · Mathematics 2023-02-14 David J. Santana , Luis Rincón

We give an interpretation of the bilateral exit problem for L\'{e}vy processes via the study of an elementary Markov chain. We exhibit a strong connection between this problem and Krein's theory on strings. For instance, for symmetric…

Probability · Mathematics 2007-05-23 Sonia Fourati

In this paper we investigate an optimal dividend problem with transaction costs, where the surplus process is modelled by a refracted L\'evy process and the ruin time is considered with Parisian delay. Presence of the transaction costs…

Probability · Mathematics 2019-07-10 Irmina Czarna , Adam Kaszubowski

In this paper we investigate continuity properties for ruin probability in the classical risk model. Properties of contractive integral operators are used to derive continuity estimates for the deficit at ruin. These results are also…

Probability · Mathematics 2025-11-18 Lazaros Kanellopoulos

For given two standard processes with no positive jumps, we construct, using the excursion theory, a Markov process whose positive and negative motions have the same law as the two processes. The resulting process is a generalization of…

Probability · Mathematics 2018-06-15 Kei Noba

We provide, in a general setting, explicit solutions for optimal stopping problems that involve diffusion process and its running maximum. Our approach is to use the excursion theory for Levy processes. Since general diffusions are, in…

Optimization and Control · Mathematics 2016-09-13 Masahiko Egami , Tadao Oryu

We establish a connection between the scattering inverse problem and the determination of the distribution of the position of the Levy process at the exit time of a bounded interval in term of its Levy exponent.

Probability · Mathematics 2007-05-23 Sonia Fourati

The study deals with the ruin problem when an insurance company invests its reserve in a risky asset whose the price dynamics is given by a geometric L\'evy process. Considering the ruin probability as a of the capital reserve we obtain for…

Probability · Mathematics 2024-01-10 Viktor Antipov , Yuri Kabanov

We consider de Finetti's optimal dividends problem with absolutely continuous strategies in a spectrally negative L\'evy model with Parisian ruin as the termination time. The problem considered is essentially a generalization of both the…

Probability · Mathematics 2024-07-30 Félix Locas , Jean-François Renaud

In this paper we derive the exact asymptotics of the probability of Parisian ruin for self-similar Gaussian risk processes. Additionally, we obtain the normal approximation of the Parisian ruin time and derive an asymptotic relation between…

Probability · Mathematics 2014-05-14 Krzysztof Dȩbicki , Enkelejd Hashorva , Lanpeng Ji

We find the optimal investment strategy in a Black-Scholes market to minimize the probability of so-called {\it lifetime exponential Parisian ruin}, that is, the probability that wealth exhibits an excursion below zero of an exponentially…

Optimization and Control · Mathematics 2021-04-27 Xiaoqing Liang , Virginia R. Young

This paper concerns an optimal impulse control problem associated with a refracted L\'{e}vy process, involving the reduction of reserves to a predetermined level whenever they exceed a specified threshold. The ruin time is determined by…

Optimization and Control · Mathematics 2026-01-29 Zhongqin Gao , Yan Lv , Jingmin He

For a multivariate L\'evy process satisfying the Cram\'er moment condition and having a drift vector with at least one negative component, we derive the exact asymptotics of the probability of ever hitting the positive orthant that is being…

Probability · Mathematics 2018-03-06 Konstantin Borovkov , Zbigniew Palmowski

Let $X$ be a real L\'evy process and let $\Xpos $ be the process conditioned to stay positive. We assume that $ 0 $ is regular for $(-\infty, 0)$ and $(0, +\infty) $ with respect to $X$. Using elementary excursion theory arguments, we…

Probability · Mathematics 2007-05-23 Thomas Duquesne

Given a Gaussian risk process $R(t)=u+c(t)-X(t),t\ge 0$, the cumulative Parisian ruin probability on a finite time interval $[0,T]$ with respect to $L \geq 0$ is defined as the probability that the sojourn time that the risk process $R$…

Probability · Mathematics 2024-02-06 Svyatoslav M. Novikov

We demonstrate the existence of a "L\'evy system" for the excursions of a one-dimensional diffusion process above its past-minimum process. As applications we provide a direct proof of D. Williams' decomposition (in both a global and a…

Probability · Mathematics 2013-08-26 P. J. Fitzsimmons

We derive exact tail asymptotics of the Parisian ruin probability for Gaussian risk models driven by locally self-similar Gaussian processes with a power-type deterministic trend. The considered setting includes non-stationary Gaussian…

Probability · Mathematics 2026-04-02 Svyatoslav M. Novikov

In this paper we consider the Parisian ruin probabilities for the dual risk model in a discrete-time setting. By exploiting the strong Markov property of the risk process we derive a recursive expression for the fnite-time Parisian ruin…

Probability · Mathematics 2017-08-24 Zbigniew Palmowski , Lewis Ramsden , Apostolos D. Papaioannou

Motivated by classical considerations from risk theory, we investigate boundary crossing problems for refracted L\'evy processes. The latter is a L\'evy process whose dynamics change by subtracting off a fixed linear drift (of suitable…

Probability · Mathematics 2008-05-12 Andreas E. Kyprianou , Ronnie Loeffen

In this paper we propose new iterative algorithm of calculating the joint distribution of the Parisian ruin time and the number of claims until Parisian ruin for the classical risk model. Examples are provided when the generic claim size is…

Probability · Mathematics 2016-03-21 Irmina Czarna , Yanhong Li , Zbigniew Palmowski , Chunming Zhao