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In this paper the turnpike property is established for a non-convex optimal control problem in discrete time. The functional is defined by the notion of the ideal convergence and can be considered as an analogue of the terminal functional…

Optimization and Control · Mathematics 2022-11-01 Musa Mammadov , Piotr Szuca

We study extra time-frequency shift invariance properties of Gabor spaces. For a Gabor space generated by an integer lattice, we state and prove several characterizations for its time-frequency shift invariance with respect to a finer…

Classical Analysis and ODEs · Mathematics 2017-11-07 Carlos Cabrelli , Dae Gwan Lee , Ursula Molter , Goetz E. Pfander

A continuous-path semimartingale market model with wealth processes discounted by a riskless asset is considered. The numeraire portfolio is the unique strictly positive wealth process that, when used as a benchmark to denominate all other…

Portfolio Management · Quantitative Finance 2010-12-24 Constantinos Kardaras

This paper focuses on the invariance control problem for discrete-time switched nonlinear systems. The proposed approach computes controlled invariant sets in a finite number of iterations and directly yields a partition-based invariance…

Optimization and Control · Mathematics 2016-09-01 Yinan Li , Jun Liu

We study the optimal timing of derivative purchases in incomplete markets. In our model, an investor attempts to maximize the spread between her model price and the offered market price through optimally timing her purchase. Both the…

Pricing of Securities · Quantitative Finance 2011-10-12 Tim Leung , Michael Ludkovski

We propose new nonparametric estimators of the integrated volatility of an It\^{o} semimartingale observed at discrete times on a fixed time interval with mesh of the observation grid shrinking to zero. The proposed estimators achieve the…

Statistics Theory · Mathematics 2014-05-30 Jean Jacod , Viktor Todorov

A general theory is derived for the moments of the first passage time of a one-dimensional Markov process in presence of a weak time-dependent forcing. The linear corrections to the moments can be expressed by quadratures of the potential…

Statistical Mechanics · Physics 2009-11-10 Benjamin Lindner

The Markowitz problem consists of finding in a financial market a self-financing trading strategy whose final wealth has maximal mean and minimal variance. We study this in continuous time in a general semimartingale model and under cone…

Portfolio Management · Quantitative Finance 2012-06-04 Christoph Czichowsky , Martin Schweizer

To describe the nonequilibrium states of a system we introduce a new thermodynamic parameter - the lifetime (the first passage time) of a system. The statistical distributions that can be obtained out of the mesoscopic description…

Chemical Physics · Physics 2007-05-23 V. V. Ryazanov

In this paper we survey some recent results on the central limit theorem and its weak invariance principle for stationary sequences. We also describe several maximal inequalities that are the main tool for obtaining the invariance…

Probability · Mathematics 2016-08-16 Florence Merlevède , Magda Peligrad , Sergey Utev

Motivated by entropic optimal transport, time reversal of Markov jump processes in $\mathbb{R}^n$ is investigated. Relying on an abstract integration by parts formula for the carr\'e du champ of a Markov process recently obtained by…

Probability · Mathematics 2022-09-05 Giovanni Conforti , Christian Léonard

The distribution of the "mixing time" or the "time to stationarity" in a discrete time irreducible Markov chain, starting in state i, can be defined as the number of trials to reach a state sampled from the stationary distribution of the…

Probability · Mathematics 2014-03-05 Jeffrey J. Hunter

In this paper, we propose several "measurements" of the "non-stopping timeness" of ends g of previsible sets, such that g avoids stopping times, in an ambiant filtration. We then study several explicit examples, involving last passage times…

Probability · Mathematics 2008-12-02 Ju-Yi Yen , Marc Yor

This article proposes a novel test for the martingale difference hypothesis based on the martingale difference divergence function, a recently developed dependence measure suitable for measuring the degree of conditional mean dependence of…

Applications · Statistics 2023-11-10 Luca Mattia Rolla

We consider discrete time dynamical systems and show the link between Hitting Time Statistics (the distribution of the first time points land in asymptotically small sets) and Extreme Value Theory (distribution properties of the partial…

Dynamical Systems · Mathematics 2010-06-17 Ana Cristina Moreira Freitas , Jorge Milhazes Freitas , Mike Todd

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

Recent empirical studies suggest that the volatility of an underlying price process may have correlations that decay slowly under certain market conditions. In this paper, the volatility is modeled as a stationary process with long-range…

Pricing of Securities · Quantitative Finance 2018-04-17 Josselin Garnier , Knut Solna

In this paper we give a financial justification, based on non arbitrage conditions, of the $(H)$ hypothesis in default time modelling. We also show how the $(H)$ hypothesis is affected by an equivalent change of probability measure. The…

Probability · Mathematics 2008-12-23 Delia Coculescu , Monique Jeanblanc , Ashkan Nikeghbali

Based on a weak convergence argument, we provide a necessary and sufficient condition that guarantees that a nonnegative local martingale is indeed a martingale. Typically, conditions of this sort are expressed in terms of integrability…

Probability · Mathematics 2014-04-24 Jose Blanchet , Johannes Ruf

Given the univariate marginals of a real-valued, continuous-time martingale, (respectively, a family of measures parameterised by $t \in [0,T]$ which is increasing in convex order, or a double continuum of call prices) we construct a family…

Probability · Mathematics 2015-05-15 David Hobson
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