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In this paper, we study option pricing under Vasicek Model by a Hamiltonian approach. Since the interest rate changes with time, we split the time to maturity into infinite steps, and the matrix element during each step could be calculated…

Pricing of Securities · Quantitative Finance 2024-12-09 Chao Guo , Ning Yao

We introduce a class of models for multidimensional control problems which we call skip-free Markov decision processes on trees. We describe and analyse an algorithm applicable to Markov decision processes of this type that are skip-free in…

Optimization and Control · Mathematics 2013-11-11 E. J. Collins

Mathematical modelling and defining useful recommendations for construction and regimes of exploitation for hot water solar installation with thermal stratification is the main purpose of this work. A special experimental solar module for…

Computational Engineering, Finance, and Science · Computer Science 2007-05-23 Stanko Vl. Shtrakov , Anton Stoilov

For a long time interest-rate models were built on a single yield curve used both for discounting and forwarding. However, the crisis that has affected financial markets in the last years led market players to revise this assumption and…

Pricing of Securities · Quantitative Finance 2010-11-04 Nicola Moreni , Andrea Pallavicini

Energy storage is a fundamental component for the development of sustainable and environment-aware technologies. One of the critical challenges that needs to be overcome is preserving the State of Health (SoH) in energy harvesting systems,…

Systems and Control · Computer Science 2015-11-24 Roberto Valentini , Nga Dang , Marco Levorato , Eli Bozorgzadeh

Our paper aims to model supply and demand curves of electricity day-ahead auction in a parsimonious way. Our main task is to build an appropriate algorithm to present the information about electricity prices and demands with far less…

Pricing of Securities · Quantitative Finance 2020-02-04 Mariia Soloviova , Tiziano Vargiolu

We propose a novel machine learning approach for probabilistic forecasting of hourly day-ahead electricity prices. In contrast with the recent advances in data-rich probabilistic forecasting, which approximates distributions with few…

General Economics · Economics 2025-07-04 Jozef Barunik , Lubos Hanus

Markov decision processes (MDPs) are standard models for probabilistic systems with non-deterministic behaviours. Mean payoff (or long-run average reward) provides a mathematically elegant formalism to express performance related…

Performance · Computer Science 2017-09-08 Jan Křetínský , Tobias Meggendorfer

Industrial and power systems rely on engineering predictions of the flow properties of working fluids. The paper proposes a way of the utilization of the vapor quality values along the new retrograde condensation curve in the generation of…

Fluid Dynamics · Physics 2014-02-14 Mark S. Labinov

Long-term planning of a robust power system requires the understanding of changing demand patterns. Electricity demand is highly weather sensitive. Thus, the supply side variation from introducing intermittent renewable sources, juxtaposed…

Machine Learning · Computer Science 2022-09-13 Reshmi Ghosh , Michael Craig , H. Scott Matthews , Constantine Samaras , Laure Berti-Equille

The main result is a doubly exponential decision procedure for the first-order equality theory of streams with both arithmetic and control-oriented stream operations. This stream logic is expressive for elementary problems of stream…

Logic in Computer Science · Computer Science 2024-01-05 Harald Ruess

We formulate thermodynamics of economic systems in terms of an arbitrary probability distribution for a conserved economic quantity. As in statistical physics, thermodynamic macroeconomic variables emerge as the mean value of microeconomic…

Statistical Finance · Quantitative Finance 2011-05-26 H. Quevedo , M. N. Quevedo

Steam power turbine-based power plant approximately contributes 90% of the total electricity produced in the United States. Mainly steam turbine consists of multiple types of turbine, boiler, attemperator, reheater, etc. Power is produced…

Applications · Statistics 2021-04-13 Prama Debnath , Mithun Ghosh

Birth and death Markov processes can model stochastic physical systems from percolation to disease spread and, in particular, wildfires. We introduce and analyze a birth-death-suppression Markov process as a model of controlled culling of…

Adaptation and Self-Organizing Systems · Physics 2023-10-11 George Hulsey , David L. Alderson , Jean Carlson

We introduce an energy-based model, which seems especially suited for constrained systems. The proposed model provides an alternative to the popular port-Hamiltonian framework and exhibits similar properties such as energy dissipation as…

Numerical Analysis · Mathematics 2024-12-10 R. Altmann , P. Schulze

Markov models are widely used to describe processes of stochastic dynamics. Here, we show that Markov models are a natural consequence of the dynamical principle of Maximum Caliber. First, we show that when there are different possible…

Statistical Mechanics · Physics 2015-05-28 Hao Ge , Steve Presse , Kingshuk Ghosh , Ken Dill

A two-stage multi-period mixed-integer linear stochastic programming model is proposed to assist qualified operators in long-term generation and transmission expansion planning of electricity and gas systems to meet policy objectives. The…

Optimization and Control · Mathematics 2025-05-22 Giovanni Micheli , Maria Teresa Vespucci , Alessia Cortazzi , Cinzia Puglisi

Modeling wind speed is one of the key element when dealing with the production of energy through wind turbines. A good model can be used for forecasting, site evaluation, turbines design and many other purposes. In this work we are…

Data Analysis, Statistics and Probability · Physics 2015-02-12 G. D'Amico , F. Petroni , F. Prattico

Energy system models are increasingly being used to explore scenarios with large shares of variable renewables. This requires input data of high spatial and temporal resolution and places a considerable preprocessing burden on the modeling…

Physics and Society · Physics 2020-03-04 Niclas Mattsson , Vilhelm Verendel , Fredrik Hedenus , Lina Reichenberg

Time homogeneous polynomial processes are Markov processes whose moments can be calculated easily through matrix exponentials. In this work, we develop a notion of time inhomogeneous polynomial processes where the coeffiecients of the…

Probability · Mathematics 2018-06-12 María Fernanda del Carmen Agoitia Hurtado , Thorsten Schmidt
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