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Scaling properties in financial fluctuations are reviewed from the standpoint of statistical physics. We firstly show theoretically that the balance of demand and supply enhances fluctuations due to the underlying phase transition…

Statistical Mechanics · Physics 2008-12-10 H. Takayasu , M. Takayasu , M. P. Okazaki , K. Marumo , T. Shimizu

We consider a single server queueing system with admission control and the possibility to switch dynamically between a low and a high service rate, and examine the benefit of this service rate flexibility. We formulate a discounted Markov…

Optimization and Control · Mathematics 2015-12-08 Yiannis Dimitrakopoulos , Apostolos Burnetas

Consider an M/M/$s$ queue with the additional feature that the arrival rate is a random variable of which only the mean, variance, and range are known. Using semi-infinite linear programming and duality theory for moment problems, we…

The vast literature on exchange rate fluctuations estimates the exchange rate pass-through (ERPT). Most ERPT studies consider annually aggregated data for developed or large developing countries for estimating ERPT. These estimates vary…

General Economics · Economics 2023-03-08 Md Deluair Hossen

In this paper we investigate the scaling behavior of the average daily exchange rate returns of the Indian Rupee against four foreign currencies namely US Dollar, Euro, Great Britain Pound and Japanese Yen. Average daily exchange rate…

Physics and Society · Physics 2009-11-11 A. Sarkar , P. Barat

In this paper we aim to improve existing empirical exchange rate models by accounting for uncertainty with respect to the underlying structural representation. Within a flexible Bayesian non-linear time series framework, our modeling…

Econometrics · Economics 2018-12-04 Niko Hauzenberger , Florian Huber

This thesis applies entropy as a model independent measure to address three research questions concerning financial time series. In the first study we apply transfer entropy to drawdowns and drawups in foreign exchange rates, to study their…

Statistical Finance · Quantitative Finance 2018-07-26 Stephan Schwill

We propose a two-step graph learning approach for foreign exchange statistical arbitrages (FXSAs), addressing two key gaps in prior studies: the absence of graph-learning methods for foreign exchange rate prediction (FXRP) that leverage…

Trading and Market Microstructure · Quantitative Finance 2025-08-21 Yoonsik Hong , Diego Klabjan

Throughout the past year, Turkey's central bank policy to decrease the nominal interest rate has caused episodes of severe fluctuations in Turkish lira exchange rates. According to these conditions, the daily return of the USD/TRY have…

Statistical Finance · Quantitative Finance 2023-02-20 Mostafa R. Sarkandiz

The Foreign Exchange market is a significant market for speculators, characterized by substantial transaction volumes and high volatility. Accurately predicting the directional movement of currency pairs is essential for formulating a sound…

Statistical Finance · Quantitative Finance 2024-10-08 Kevin Cedric Guyard , Michel Deriaz

A single server retrial queueing system with two-classes of orbiting customers, and general class dependent service times is considered. If an arriving customer finds the server unavailable, it enters a virtual queue, called the orbit,…

Probability · Mathematics 2018-02-22 Ioannis Dimitriou

Resetting is a strategy for boosting the speed of a target-searching process. Since its introduction over a decade ago, most studies have been carried out under the assumption that resetting takes place instantaneously. However, due to its…

Statistical Mechanics · Physics 2023-05-09 Priyo Shankar Pal , Arnab Pal , Hyunggyu Park , Jae Sung Lee

To perform a queuing analysis or design in a communications context, we need to estimate the values of the input parameters, specifically the mean of the arrival rate and service time. In this paper, we propose an approach for estimating…

Applications · Statistics 2008-02-26 Xinjia Chen

We consider the problem of estimating the common time of a change in the mean parameters of panel data when dependence is allowed between the panels in the form of a common factor. A CUSUM type estimator is proposed, and we establish first…

Statistics Theory · Mathematics 2015-03-17 Lajos Horváth , Marie Hušková , Gregory Rice , Jia Wang

Using a Levy process we generalize formulas in Bo et al.(2010) for the Esscher transform parameters for the log-normal distribution which ensure the martingale condition holds for the discounted foreign exchange rate. Using these values of…

Computational Finance · Quantitative Finance 2014-02-11 Anatoliy Swishchuk , Maksym Tertychnyi , Robert Elliott

Recent studies indicate that in many situations service times are affected by the experienced queueing delay of the particular customer. This effect has been detected in different areas, such as health care, call centers and…

Probability · Mathematics 2025-04-25 Bernardo D'Auria , Ivo J. B. F. Adan , René Bekker , Vidyadhar Kulkarni

We present a heavy traffic analysis for a single server queue with renewal arrivals and generally distributed i.i.d. service times, in which the server employs the Shortest Remaining Processing Time (SRPT) policy. Under typical heavy…

Probability · Mathematics 2012-10-04 H. Christian Gromoll , Łukasz Kruk , Amber L. Puha

We propose an approach to explain fluctuations in time intervals of financial markets data from the view point of the Gini index. We show the explicit form of the Gini index for a Weibull distribution which is a good candidate to describe…

Data Analysis, Statistics and Probability · Physics 2009-11-13 Naoya Sazuka , Jun-ichi Inoue

We consider polling models in the sense of Takagi (MIT Press, 1986). In our case, the feature of the server is that it may be forced to wait idly for new messages at an empty queue instead of switching to the next station. We propose four…

Probability · Mathematics 2016-12-15 Frank Aurzada , Sebastian Schwinn

Tandem queueing networks are widely used to model systems where services are provided in sequential stages. In this study, we assume that each station in the tandem system operates under a general renewal process. Additionally, we assume…

Probability · Mathematics 2024-11-13 Eliran Sherzer