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In this paper, a backward map is introduced for the purposes of analysis of the nonlinear (stochastic) filter stability. The backward map is important because the filter-stability in the sense of $\chisq$-divergence follows from showing a…

Probability · Mathematics 2024-10-10 Jin Won Kim , Anant A. Joshi , Prashant G. Mehta

This paper is concerned with the problem of nonlinear filter stability of ergodic Markov processes. The main contribution is the conditional Poincar\'e inequality (PI), which is shown to yield filter stability. The proof is based upon a…

Probability · Mathematics 2021-10-12 Jin Won Kim , Prashant G. Mehta , Sean Meyn

This thesis is concerned with the stochastic filtering problem for a hidden Markov model (HMM) with the white noise observation model. For this filtering problem, we make three types of original contributions: (1) dual controllability…

Optimization and Control · Mathematics 2022-07-19 Jin Won Kim

This paper is concerned with the development and use of duality theory for a hidden Markov model (HMM) with white noise observations. The main contribution of this work is to introduce a backward stochastic differential equation (BSDE) as a…

Optimization and Control · Mathematics 2022-08-16 Jin Won Kim , Prashant G. Mehta

Filter stability is a classical problem in the study of partially observed Markov processes (POMP), also known as hidden Markov models (HMM). For a POMP, an incorrectly initialized non-linear filter is said to be (asymptotically) stable if…

Probability · Mathematics 2020-05-22 Curtis McDonald , Serdar Yuksel

This paper develops a connection between the asymptotic stability of nonlinear filters and a notion of observability. We consider a general class of hidden Markov models in continuous time with compact signal state space, and call such a…

Probability · Mathematics 2009-06-15 Ramon van Handel

A hidden Markov model is called observable if distinct initial laws give rise to distinct laws of the observation process. Observability implies stability of the nonlinear filter when the signal process is tight, but this need not be the…

Probability · Mathematics 2009-08-10 Ramon van Handel

This paper revisits the classical question of the stability of the nonlinear Wonham filter. The novel contributions of this paper are two-fold: (i) definition of the stabilizability for the (control-theoretic) dual to the nonlinear filter;…

Probability · Mathematics 2021-10-12 Jin Won Kim , Prashant G. Mehta

We investigate the robustness of nonlinear filtering for continuous time finite state Markov chains, observed in white noise, with respect to misspecification of the model parameters. It is shown that the distance between the optimal filter…

Probability · Mathematics 2007-05-23 Pavel Chigansky , Ramon van Handel

This paper studies the mixed $H_-/H_{\infty}$ fault detection filtering of It\^o-type nonlinear stochastic systems. Mixed $H_-/H_{\infty}$ filtering combines the system robustness to the external disturbance and the sensitivity to the fault…

Optimization and Control · Mathematics 2018-12-21 Tianliang Zhang , Feiqi Deng , Weihai Zhang , Bor-Sen Chen

We formulate and analyze an inverse problem using derivatives prices to obtain an implied filtering density on volatility's hidden state. Stochastic volatility is the unobserved state in a hidden Markov model (HMM) and can be tracked using…

Pricing of Securities · Quantitative Finance 2017-03-07 Carlos Fuertes , Andrew Papanicolaou

We consider a hidden Markov model with multiplicative noise emerging from studies of software reliability. We show the stability of the optimal filter with respect to general initial conditions in the total variation- and $L^p$-norm and…

Probability · Mathematics 2013-01-21 Birgit Debrabant , Wilhelm Stannat

Despite being a foundational concept of modern systems theory, there have been few studies on observability of non-linear stochastic systems under partial observations. In this paper, we introduce a definition of observability for…

Probability · Mathematics 2022-12-08 Curtis McDonald , Serdar Yuksel

We study the nonlinear stability of a large class of inhomogeneous steady state solutions to the Hamiltonian Mean Field (HMF) model. Under a simple criterion, we prove the nonlinear stability of steady states which are decreasing functions…

Analysis of PDEs · Mathematics 2015-09-30 Mohammed Lemou , Ana Maria Luz , Florian Mehats

This paper is concerned with a characterization of the observability for a continuous-time hidden Markov model where the state evolves as a general continuous-time Markov process and the observation process is modeled as nonlinear function…

Probability · Mathematics 2020-02-25 Jin W. Kim , Prashant G. Mehta

Regime-switching models, in particular Hidden Markov Models (HMMs) where the switching is driven by an unobservable Markov chain, are widely-used in financial applications, due to their tractability and good econometric properties. In this…

Statistical Finance · Quantitative Finance 2016-02-18 Vikram Krishnamurthy , Elisabeth Leoff , Jörn Sass

This paper is concerned with the development and use of duality theory for a nonlinear filtering model with white noise observations. The main contribution of this paper is to introduce a stochastic optimal control problem as a dual to the…

Optimization and Control · Mathematics 2022-08-16 Jin Won Kim , Prashant G. Mehta

In this paper we study posterior consistency for different topologies on the parameters for hidden Markov models with finite state space. We first obtain weak and strong posterior consistency for the marginal density function of finitely…

Statistics Theory · Mathematics 2014-07-09 Elodie Vernet

The forgetting of the initial distribution for discrete Hidden Markov Models (HMM) is addressed: a new set of conditions is proposed, to establish the forgetting property of the filter, at a polynomial and geometric rate. Both a…

Statistics Theory · Mathematics 2008-07-18 Randal Douc , Gersende Fort , Eric Moulines , Pierre Priouret

Exponential stability of the nonlinear filtering equation is revisited, when the signal is a finite state Markov chain. An asymptotic upper bound for the filtering error due to incorrect initial condition is derived in the case of slowly…

Probability · Mathematics 2007-05-23 P. Chigansky
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