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Density expansions for hypoelliptic diffusions $(X^1,...,X^d)$ are revisited. In particular, we are interested in density expansions of the projection $(X_T^1,...,X_T^l)$, at time $T>0$, with $l \leq d$. Global conditions are found which…

Probability · Mathematics 2013-05-30 J. D. Deuschel , P. K. Friz , A. Jacquier , S. Violante

This survey aims to review two decades of progress on exponential functionals of (possibly killed) real-valued L\'evy processes. Since the publication of the seminal survey by Bertoin and Yor, substantial advances have been made in…

Probability · Mathematics 2026-05-29 Martin Minchev , Mladen Savov

We present decompositions of various positive kernels as integrals or sums of positive kernels. Within this framework we study the reproducing kernel Hilbert spaces associated with the fractional and bi-fractional Brownian motions. As a…

Probability · Mathematics 2007-05-23 Daniel Alpay , David Levanony

The effective diffusion of Brownian particles in periodic potential has been a central topic in nonequilibrium statistical physcis. A classical result is the Lifson formula which provides the effective diffusion constant in periodic…

Statistical Mechanics · Physics 2026-01-22 Sang Yang , Zhixin Peng

We derive an asymptotic expansion for the quadratic variation of a stochastic process satisfying a stochastic differential equation driven by a fractional Brownian motion, based on the theory of asymptotic expansion of Skorohod integrals…

Probability · Mathematics 2022-06-02 Hayate Yamagishi , Nakahiro Yoshida

We construct a sequence of functions that uniformly converge (on compact sets) to the price of Asian option, which is written on a stock whose dynamics follows a jump diffusion, exponentially fast. Each of the element in this sequence…

Computational Engineering, Finance, and Science · Computer Science 2008-10-29 Erhan Bayraktar , Hao Xing

Fractional Brownian motion can be represented as an integral of a deterministic kernel w.r.t. an ordinary Brownian motion either on infinite or compact interval. In previous literature fractional L\'evy processes are defined by integrating…

Probability · Mathematics 2011-11-11 Heikki Tikanmäki , Yuliya Mishura

We show that the rate of convergence of asymptotic expansions for solutions of SDEs is generally higher in the case of degenerate (or partial) diffusion compared to the elliptic case, i.e. it is higher when the Brownian motion directly acts…

Probability · Mathematics 2016-10-06 S. Pagliarani , A. Pascucci , M. Pignotti

Brownian motion in one or more dimensions is extensively used as a stochastic process to model natural and engineering signals, as well as financial data. Most works dealing with multidimensional Brownian motion consider the different…

Statistical Mechanics · Physics 2025-03-10 Michał Balcerek , Adrian Pacheco-Pozo , Agnieszka Wyłomanska , Krzysztof Burnecki , Diego Krapf

We discuss the distribution of various estimators for extracting the diffusion constant of single Brownian trajectories obtained by fitting the squared displacement of the trajectory. The analysis of the problem can be framed in terms of…

Statistical Mechanics · Physics 2015-05-28 Denis Boyer , David S. Dean

We investigate fractional Brownian motion with a microscopic random-matrix model and introduce a fractional Langevin equation. We use the latter to study both sub- and superdiffusion of a free particle coupled to a fractal heat bath. We…

Statistical Mechanics · Physics 2009-11-07 E. Lutz

In the framework of higher transcendental functions the Wright functions of the second kind have increased their relevance resulting from their applications in probability theory and, in particular, in fractional diffusion processes. Here,…

General Mathematics · Mathematics 2022-07-07 Francesco Mainardi , Richard B. Paris , Armando Consiglio

Consider a one-dimensional exclusion process with finite-range translation-invariant jump rates with non-zero drift. Let the process be stationary with product Bernoulli invariant distribution at density \rho. Place a second class particle…

Probability · Mathematics 2007-05-23 Timo Seppalainen , Sunder Sethuraman

The discrete sum of geometric Brownian motions plays an important role in modeling stochastic annuities in insurance. It also plays a pivotal role in the pricing of Asian options in mathematical finance. In this paper, we study the…

Pricing of Securities · Quantitative Finance 2016-09-27 Dan Pirjol , Lingjiong Zhu

We develop two-dimensional Brownian dynamics simulations to examine the motion of disks under thermal fluctuations and Hookean forces. Our simulations are designed to be experimental-like, since the experimental conditions define the…

Soft Condensed Matter · Physics 2017-05-26 Manuel Pancorbo , Miguel A. Rubio , P. Domínguez-García

We present new exact expressions for a class of moments for the geometric Brownian motion, in terms of determinants, obtained using a recurrence relation and combinatorial arguments for the case of a Ito's Wiener process. We then apply the…

Statistical Mechanics · Physics 2022-09-13 Francesco Caravelli , Toufik Mansour , Lorenzo Sindoni , Simone Severini

We derive the joint density of a Skew Brownian motion, its last visit to the origin, local and occupation times. The result is applied to option pricing in a two valued local volatility model and in a displaced diffusion model with…

Probability · Mathematics 2015-03-13 Alexander Gairat , Vadim Shcherbakov

We study the distribution of additive functionals of reset Brownian motion, a variation of normal Brownian motion in which the path is interrupted at a given rate and placed back to a given reset position. Our goal is two-fold: (1) For…

Probability · Mathematics 2023-03-30 Frank den Hollander , Satya N. Majumdar , Janusz M. Meylahn , Hugo Touchette

We find a simple expression for the probability density of $\int \exp (B_s - s/2) ds$ in terms of its distribution function and the distribution function for the time integral of $\exp (B_s + s/2)$. The relation is obtained with a change of…

Probability · Mathematics 2008-12-10 Victor Goodman , Kyounghee Kim

We establish a link between the distribution of an exponential functional I and the undershoots of a subordinator, which is given in terms of the associated harmonic potential measure. This allows us to give a necessary and sufficient…

Probability · Mathematics 2015-01-13 Larbi Alili , Wissem Jedidi , Víctor Rivero