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We develop a model for credit rating migration that accounts for the impact of economic state fluctuations on default probabilities. The joint process for the economic state and the rating is modelled as a time-homogeneous Markov chain.…

Risk Management · Quantitative Finance 2024-03-25 Michael Kalkbrener , Natalie Packham

In the paper we consider some piecewise deterministic Markov process whose continuous component evolves according to semiflows, which are switched at the jump times of a Poisson process. The associated Markov chain describes the states of…

Probability · Mathematics 2023-10-06 Dawid Czapla , Sander C. Hille , Katarzyna Horbacz , Hanna Wojewódka-Ściążko

Data collected by wearable devices in sports provide valuable information about an athlete's behavior such as their activity, performance, and ability. These time series data can be studied with approaches such as hidden Markov and…

Applications · Statistics 2020-10-22 Shirley Rojas-Salazar , Erin M. Schliep , Christopher K. Wikle , Matthew Hawkey

The reduction of a continuous Markov process with multiple metastable states to a discrete rate process is investigated in the presence of slow time dependent parameters such as periodic external forces or slowly fluctuating barrier…

Statistical Mechanics · Physics 2009-11-10 Peter Talkner , Jerzy Luczka

We propose a unified framework that extends the inference methods for classical hidden Markov models to continuous settings, where both the hidden states and observations occur in continuous time. Two different settings are analyzed: hidden…

Methodology · Statistics 2021-06-18 Qingcan Wang , Weinan E

Behavioural metrics provide a quantitative refinement of classical two-valued behavioural equivalences on systems with quantitative data, such as metric or probabilistic transition systems. In analogy to the linear-time/branching-time…

Logic in Computer Science · Computer Science 2025-01-28 Jonas Forster , Lutz Schröder , Paul Wild , Harsh Beohar , Sebastian Gurke , Barbara König , Karla Messing

With the increasing ubiquity of safety-critical autonomous systems operating in uncertain environments, there is a need for mathematical methods for formal verification of stochastic models. Towards formally verifying properties of…

Systems and Control · Electrical Eng. & Systems 2026-02-18 Adrien Banse , Giannis Delimpaltadakis , Luca Laurenti , Manuel Mazo , Raphaël M. Jungers

Continuous-time Markov decision processes are an important class of models in a wide range of applications, ranging from cyber-physical systems to synthetic biology. A central problem is how to devise a policy to control the system in order…

Systems and Control · Computer Science 2016-06-01 Ezio Bartocci , Luca Bortolussi , Tomǎš Brázdil , Dimitrios Milios , Guido Sanguinetti

In this paper, we proved moderate deviation principles for a fully coupled two-time-scale stochastic systems, where the slow process is given by stochastic differential equations with small noise, while the fast process is a rapidly…

Probability · Mathematics 2025-12-02 Hongjiang Qian

Simulation and bisimulation metrics for stochastic systems provide a quantitative generalization of the classical simulation and bisimulation relations. These metrics capture the similarity of states with respect to quantitative…

Computer Science and Game Theory · Computer Science 2015-07-01 Krishnendu Chatterjee , Luca de Alfaro , Rupak Majumdar , Vishwanath Raman

We construct a model of Brownian Motion on a pseudo-Riemannian manifold associated with general relativity. There are two aspects of the problem: The first is to define a sequence of stopping times associated with the Brownian "kicks" or…

General Physics · Physics 2013-04-02 Paul O'Hara , Lamberto Rondoni

We consider state-based systems modelled as coalgebras whose type incorporates branching, and show that by suitably adapting the definition of coalgebraic bisimulation, one obtains a general and uniform account of the linear-time behaviour…

Logic in Computer Science · Computer Science 2013-09-05 Corina Cirstea

In this paper, we consider the gradual-impulse control problem of continuous-time Markov decision processes, where the system performance is measured by the expectation of the exponential utility of the total cost. We prove, under very…

Optimization and Control · Mathematics 2023-11-16 Xin Guo , Aiko Kurushima , Alexey Piunovskiy , Yi Zhang

The parameters of a discrete stationary Markov model are transition probabilities between states. Traditionally, data consist in sequences of observed states for a given number of individuals over the whole observation period. In such a…

Computation · Statistics 2012-04-30 Alberto Pasanisi , Shuai Fu , Nicolas Bousquet

Markov branching systems form a fundamental class of stochastic models that are extensively applied in biology, physics, finance, and other domains. These systems are distinguished by their continuous-time evolution and inherent branching…

Time-delay systems are an important class of dynamical systems which provide a solid mathematical framework to deal with many application domains of interest ranging from biology, chemical, electrical, and mechanical engineering, to…

Dynamical Systems · Mathematics 2009-03-28 Giordano Pola , Pierdomenico Pepe , Maria D. Di Benedetto , Paulo Tabuada

Bisimulation metrics define a distance measure between states of a Markov decision process (MDP) based on a comparison of reward sequences. Due to this property they provide theoretical guarantees in value function approximation (VFA). In…

Machine Learning · Computer Science 2022-11-15 Mete Kemertas , Allan Jepson

A continuous-time Markov process $X$ can be conditioned to be in a given state at a fixed time $T > 0$ using Doob's $h$-transform. This transform requires the typically intractable transition density of $X$. The effect of the $h$-transform…

Probability · Mathematics 2024-09-16 Marc Corstanje , Frank van der Meulen , Moritz Schauer

In this work we consider time series with a finite number of discrete point changes. We assume that the data in each segment follows a different probability density functions (pdf). We focus on the case where the data in all segments are…

Data Analysis, Statistics and Probability · Physics 2007-05-23 Ali Mohammad-Djafari , Olivier Feron

In the context of Markov processes, we show a new scheme to derive dual processes and a duality function based on a boson representation. This scheme is applicable to a case in which a generator is expressed by boson creation and…

Statistical Mechanics · Physics 2015-05-14 Jun Ohkubo