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By studying an admissible family of branching mechanisms introduced in Li (2014), we obtain a pruning procedure on L\'evy trees. Then we could construct a decreasing L\'evy-CRT-valued process $\{{\mathcal T}_t\}$ by pruning L\'evy trees and…

Probability · Mathematics 2017-04-19 Hongwei Bi , Hui He

We show that if a L\'evy process creeps then, as a function of $u$, the renewal function $V(t,u)$ of the bivariate ascending ladder process $(L^{-1},H)$ is absolutely continuous on $[0,\infty)$ and left differentiable on $(0,\infty)$, and…

Probability · Mathematics 2011-12-21 Philip S. Griffin , Ross A. Maller

Let $X$ be a real valued L\'evy process that is in the domain of attraction of a stable law without centering with norming function $c.$ As an analogue of the random walk results in \cite{vw} and \cite{rad} we study the local behaviour of…

Probability · Mathematics 2011-07-25 Ronald Doney , Victor Rivero

For the sum process $X=X^1+X^2$ of a bivariate L\'evy process $(X^1,X^2)$ with possibly dependent components, we derive a quintuple law describing the first upwards passage event of $X$ over a fixed barrier, caused by a jump, by the joint…

Probability · Mathematics 2009-12-11 Irmingard Eder , Claudia Klüppelberg

In Kuznetsov et al. (2011) a new Monte Carlo simulation technique was introduced for a large family of Levy processes that is based on the Wiener-Hopf decomposition. We pursue this idea further by combining their technique with the recently…

The last couple of years has seen a remarkable number of new, explicit examples of the Wiener-Hopf factorization for Levy processes where previously there had been very few. We mention in particular the many cases of spectrally negative…

Probability · Mathematics 2011-04-12 Alexey Kuznetsov , Andreas E. Kyprianou , Juan Carlos Pardo

For a stochastic process $(X_t)_{t\geq 0}$ we establish conditions under which the inverse first-passage time problem has a solution for any random variable $\xi >0$. For Markov processes we give additional conditions under which the…

Probability · Mathematics 2023-05-19 Alexander Klump , Mladen Savov

We study a real-valued L\'evy-type process $X$, which is locally $\alpha$-stable in the sense that its jump kernel is a combination of a `principal' (state dependent) $\alpha$-stable part with a `residual' lower order part. We show that…

Probability · Mathematics 2019-07-09 Alexei Kulik

Drawdown (resp. drawup) of a stochastic process, also referred as the reflected process at its supremum (resp. infimum), has wide applications in many areas including financial risk management, actuarial mathematics and statistics. In this…

Mathematical Finance · Quantitative Finance 2017-06-27 David Landriault , Bin Li , Hongzhong Zhang

The classical notion of L\'evy process is generalized to one that takes as its values probabilities on a first order model equipped with a commutative semigroup. This is achieved by applying a convolution product on definable probabilities…

Logic · Mathematics 2009-10-27 Siu-Ah Ng

Let us consider a real L\'evy process X whose transition probabilities are absolutely continuous and have bounded densities. Then the law of the past supremum of X before any deterministic time t is absolutely continuous on (0,\infty). We…

Probability · Mathematics 2013-10-08 Loïc Chaumont , Jacek Malecki

This paper deals with the large deviations behavior of a stochastic process called thinned Levy process. This process appeared recently as a stochastic-process limit in the context of critical inhomogeneous random graphs. The process has a…

Probability · Mathematics 2014-04-08 Elie Aidekon , Remco van der Hofstad , Sandra Kliem , Johan S. H. van Leeuwaarden

We consider here point processes $N^f(t)$, $t>0$, with independent increments and integer-valued jumps whose distribution is expressed in terms of Bern\v{s}tein functions $f$ with L\'evy measure $\nu$. We obtain the general expression of…

Probability · Mathematics 2014-10-31 Enzo Orsingher , Bruno Toaldo

In this paper we study the mean of the first exit time from a bounded interval of various L\'evy processes. We establish sharp two-sided estimates of the mean for L\'evy processes under certain condition on their characteristic exponents.…

Probability · Mathematics 2019-11-13 Tomasz Grzywny

We study the Euler scheme for a stochastic differential equation driven by a Levy process Y. More precisely, we look at the asymptotic behavior of the normalized error process u_n(X^n-X), where X is the true solution and X^n is its Euler…

Probability · Mathematics 2007-05-23 Jean Jacod

We show that exact sampling of the first passage event can be done for a Levy process with unbounded variation, if the process can be embedded in a subordinated standard Brownian motion. By sampling a series of first exit events of the…

Probability · Mathematics 2016-06-22 Zhiyi Chi

In this paper we consider the problem of pricing a perpetual American put option in an exponential regime-switching L\'{e}vy model. For the case of the (dense) class of phase-type jumps and finitely many regimes we derive an explicit…

Pricing of Securities · Quantitative Finance 2008-12-02 Z. Jiang , M. R. Pistorius

Several long-time limit theorems of one-dimensional L\'evy processes weighted and normalized by functions of its supremum are studied. The long-time limits are taken via the families of exponential times and that of constant times, called…

Probability · Mathematics 2025-03-18 Shosei Takeda

For a spectrally negative positive self-similar Markov process with an a.s. finite overall supremum we provide, in tractable detail, a kind of conditional Wiener-Hopf factorization at the maximum of the absorption time at zero, the…

Probability · Mathematics 2018-05-16 Matija Vidmar

For a L\'evy process $X$ on a finite time interval consider the probability that it exceeds some fixed threshold $x>0$ while staying below $x$ at the points of a regular grid. We establish exact asymptotic behavior of this probability as…

Probability · Mathematics 2022-01-05 Krzysztof Bisewski , Jevgenijs Ivanovs