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In a dynamic framework, we identify a new concept associated with the risk of assessing the financial exposure by a measure that is not adequate to the actual time horizon of the position. This will be called horizon risk. We clarify that…

Probability · Mathematics 2023-11-21 Giulia Di Nunno , Emanuela Rosazza Gianin

High order momentum-based parameter update algorithms have seen widespread applications in training machine learning models. Recently, connections with variational approaches have led to the derivation of new learning algorithms with…

Optimization and Control · Mathematics 2021-06-08 Joseph E. Gaudio , Anuradha M. Annaswamy , José M. Moreu , Michael A. Bolender , Travis E. Gibson

We study a specific type of SCM, called a Dynamic Structural Causal Model (DSCM), whose endogenous variables represent functions of time, which is possibly cyclic and allows for latent confounding. As a motivating use-case, we show that…

Statistics Theory · Mathematics 2024-07-23 Philip Boeken , Joris M. Mooij

We develop an approach for solving time-consistent risk-sensitive stochastic optimization problems using model-free reinforcement learning (RL). Specifically, we assume agents assess the risk of a sequence of random variables using dynamic…

Machine Learning · Computer Science 2022-12-01 Anthony Coache , Sebastian Jaimungal

This paper establishes the equivalence between robust safety and the existence of a barrier function certificate for differential inclusions. More precisely, for a robustly-safe differential inclusion, a barrier function is constructed as…

Optimization and Control · Mathematics 2024-08-05 Mohamed Maghenem , Masoumeh Ghanbarpour

A classical result in risk measure theory states that every coherent risk measure has a dual representation as the supremum of certain expected value over a risk envelope. We study this topic in more detail. The related issues include: 1.…

Optimization and Control · Mathematics 2018-02-28 Marcus Ang , Jie Sun , Qiang Yao

This paper studies distributionally robust optimization for a rich class of risk measures with ambiguity sets defined by $\phi$-divergences. The risk measures are allowed to be non-linear in probabilities, are represented by Choquet…

Optimization and Control · Mathematics 2025-04-15 Guanyu Jin , Roger J. A. Laeven , Dick den Hertog

New biological assays like Perturb-seq link highly parallel CRISPR interventions to a high-dimensional transcriptomic readout, providing insight into gene regulatory networks. Causal gene regulatory networks can be represented by directed…

Machine Learning · Statistics 2024-02-22 Albert Xue , Jingyou Rao , Sriram Sankararaman , Harold Pimentel

The density hypothesis on random times becomes now a standard in modeling of risks. One of the basic reasons to introduce the density hypothesis is the desire to have a computable credit risk model. However, recent work shows that merely an…

Probability · Mathematics 2014-02-04 Shiqi Song

We propose a new Floquet time crystal model that responds in arbitrary multiples of the driving period. Such an $n$-tuple discrete time crystal is theoretically constructed by permuting spins in a disordered chain and is well suited for…

Quantum Physics · Physics 2025-06-10 Hongye Yu , Tzu-Chieh Wei

In this paper, we propose a class of discrete-time approximation schemes for stochastic optimal control problems under the $G$-expectation framework. The proposed schemes are constructed recursively based on piecewise constant policy. We…

Optimization and Control · Mathematics 2021-10-05 Lianzi Jiang

In this article we consider the nonparametric robust estimation problem for regression models in continuous time with semi-Markov noises observed in discrete time moments. An adaptive model selection procedure is proposed. A sharp…

Statistics Theory · Mathematics 2020-05-15 Vlad Stefan Barbu , Slim Beltaief , Serguei Pergamenshchikov

Stochastic policies (also known as relaxed controls) are widely used in continuous-time reinforcement learning algorithms. However, executing a stochastic policy and evaluating its performance in a continuous-time environment remain open…

Machine Learning · Computer Science 2025-10-03 Yanwei Jia , Du Ouyang , Yufei Zhang

This paper considers a distributed detection setup where agents in a network want to detect a time-varying signal embedded in temporally correlated noise. The signal of interest is the impulse response of an ARMA (auto-regressive moving…

Signal Processing · Electrical Eng. & Systems 2023-04-17 João Domingos , João Xavier

Continuous-time Markov process models of contagions are widely studied, not least because of their utility in predicting the evolution of real-world contagions and in formulating control measures. It is often the case, however, that…

Physics and Society · Physics 2016-11-23 Peter G. Fennell , Sergey Melnik , James P. Gleeson

Test-time adaptation offers a promising avenue for improving reasoning performance in large language models without additional supervision, but existing approaches often apply a uniform optimization objective across all inputs, leading to…

Computation and Language · Computer Science 2026-03-06 Mohammad Mahdi Moradi , Sudhir Mudur

The growing demand for personalized decision-making has led to a surge of interest in estimating the Conditional Average Treatment Effect (CATE). Various types of CATE estimators have been developed with advancements in machine learning and…

Machine Learning · Computer Science 2024-11-04 Yiyan Huang , Cheuk Hang Leung , Siyi Wang , Yijun Li , Qi Wu

We introduce the resilience rate as a measure of financial resilience. It captures the expected rate at which a dynamic risk measure recovers, i.e., bounces back, when the risk-acceptance set is breached. We develop the corresponding…

Mathematical Finance · Quantitative Finance 2026-01-26 Roger J. A. Laeven , Matteo Ferrari , Emanuela Rosazza Gianin , Marco Zullino

Two approaches to time consistency of risk averse multistage stochastic problems were discussed in the recent literature. In one approach certain properties of the cor-responding risk measure are postulated which imply its decomposability.…

Optimization and Control · Mathematics 2018-06-06 Alexander Shapiro , Kerem Ugurlu

In this paper, we consider a risk-averse decision problem for controlled-diffusion processes, with dynamic risk measures, in which there are two risk-averse decision makers (i.e., {\it leader} and {\it follower}) with different risk-averse…

Optimization and Control · Mathematics 2016-10-25 Getachew K. Befekadu , Eduardo L. Pasiliao