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We present a comprehensive discretization scheme for linear and nonlinear stochastic differential equations (SDEs) driven by either Brownian motions or $\alpha$-stable processes. Our approach utilizes compound Poisson particle…

Probability · Mathematics 2023-07-14 Xicheng Zhang

We study the effect of quenched spatial disorder on the current-carrying steady states of the totally asymmetric simple exclusion process with spatially disordered jump rates. The exact analytical expressions for the steady-state weights,…

Statistical Mechanics · Physics 2007-05-23 Kiran M. Kolwankar , Alexander Punnoose

We study monotone and convex stochastic orders for processes with independent increments. Our contributions are twofold: First, we relate stochastic orders of the Poisson component to orders of their (generalized) L\'evy measures. The…

Probability · Mathematics 2017-08-16 David Criens

We show that the optimal decision policy for several types of Bayesian sequential detection problems has a threshold switching curve structure on the space of posterior distributions. This is established by using lattice programming and…

Information Theory · Computer Science 2015-03-17 Vikram Krishnamurthy

Suppose that a compound Poisson process is observed discretely in time and assume that its jump distribution is supported on the set of natural numbers. In this paper we propose a non-parametric Bayesian approach to estimate the intensity…

Statistics Theory · Mathematics 2020-05-21 Shota Gugushvili , Ester Mariucci , Frank van der Meulen

Resetting a stochastic process is an important problem describing the evolution of physical, biological and other systems which are continually returned to their certain fixed point. We consider the motion of a subdiffusive particle with a…

Statistical Mechanics · Physics 2024-01-18 Aleksander A. Stanislavsky

Stochastic modelling of fatigue (and other material's deterioration), as well as of cumulative damage in risk theory, are often based on compound sums of independent random variables, where the number of addends is represented by an…

Probability · Mathematics 2019-12-02 L. Beghin , J. Gajda , A. Maheshwari

We consider the problem of detecting jumps in an otherwise smoothly evolving trend whilst the covariance and higher-order structures of the system can experience both smooth and abrupt changes over time. The number of jump points is allowed…

Methodology · Statistics 2023-12-27 Weichi Wu , Zhou Zhou

We consider optimal stopping problems for a Brownian motion and a geometric Brownian motion with a "disorder", assuming that the moment of a disorder is uniformly distributed on a finite interval. Optimal stopping rules are found as the…

Statistics Theory · Mathematics 2012-12-18 A. N. Shiryaev , M. V. Zhitlukhin

In this paper we give solution to the quickest drift change detection problem for a L\'evy process consisting of both a continuous Gaussian part and a jump component. We consider here Bayesian framework with an exponential a priori…

Optimization and Control · Mathematics 2018-01-03 Michał Krawiec , Zbigniew Palmowski , Łukasz Płociniczak

In mathematical finance, Levy processes are widely used for their ability to model both continuous variation and abrupt, discontinuous jumps. These jumps are practically relevant, so reliable inference on the feature that controls jump…

Statistics Theory · Mathematics 2021-09-21 Zhe Wang , Ryan Martin

We describe a variational approach to solving optimal stopping problems for diffusion processes, as an alternative to the traditional approach based on the solution of the free-boundary problem. We study smooth pasting conditions from a…

Probability · Mathematics 2015-08-06 V. I. Arkin , A. D. Slastnikov

The problem of European-style option pricing in time-changed L\'{e}vy models in the presence of compound Poisson jumps is considered. These jumps relate to sudden large drops in stock prices induced by political or economical hits. As the…

Probability · Mathematics 2020-01-10 Roman V. Ivanov , Katsunori Ano

It is well known that, under broad assumptions, the time-scaled point process of exceedances of a high level by a stationary sequence converges to a compound Poisson process as the level grows. The purpose of this note is to demonstrate…

Probability · Mathematics 2015-03-17 Konstantin Borovkov , Serguei Novak

We consider the problem of finding a stopping time that minimises the $L^1$-distance to $\theta$, the time at which a L\'evy process attains its ultimate supremum. This problem was studied in [12] for a Brownian motion with drift and a…

Probability · Mathematics 2014-01-08 Erik Baurdoux , Kees van Schaik

Since the work of Page in the 1950s, the problem of detecting an abrupt change in the distribution of stochastic processes has received a great deal of attention. In particular, a deep connection has been established between Lorden's…

Probability · Mathematics 2017-06-23 José E. Figueroa-López , Sveinn Ólafsson

In this paper, we consider parameter estimation for stochastic differential equations driven by Wiener processes and compound Poisson processes. We assume unknown parameters corresponding to coefficients of the drift term, diffusion term,…

Statistics Theory · Mathematics 2024-12-31 Shuntaro Suzuki , Takaaki Wakamatsu , Yasutaka Shimizu

The competition between strength and correlation of coupling terms in a Hamiltonian defines numerous phenomenological models exhibiting spectral properties interpolating between those of Poisson (integrable) and Wigner-Dyson (chaotic)…

Chaotic Dynamics · Physics 2022-11-18 Adway Kumar Das , Anandamohan Ghosh

In this paper exponential stability of nonlinear fractional order stochastic system with Poisson jumps is studied in finite dimensional space. Existence and uniqueness of solution, stability and exponential stability results are established…

Probability · Mathematics 2020-09-15 P. Balasubramaniam , T. Sathiyaraj , K. Priya

In this paper, we consider multistopping problems for finite discrete time sequences $X_1,...,X_n$. $m$-stops are allowed and the aim is to maximize the expected value of the best of these $m$ stops. The random variables are neither assumed…

Probability · Mathematics 2012-01-04 Andreas Faller , Ludger Rüschendorf