On perpetuities with light tails

Fuente: arXiv
Saved in:
Bibliographic Details
Main Author: Kołodziejek, Bartosz
Format: Preprint
Published: 2017
Subjects:
Online Access:
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1866914252212666368
author Kołodziejek, Bartosz
author_facet Kołodziejek, Bartosz
contents In the paper we consider the asymptotics of logarithmic tails of a perpetuity $$R \stackrel{d}{=}\sum_{j=1}^\infty Q_j \prod_{k=1}^{j-1}M_k,\qquad(M_n,Q_n)_{n=1}^\infty \mbox{ are i.i.d. copies of }(M,Q),$$ in the case when $\mathbb{P}(M\in[0,1))=1$ and $Q$ has all exponential moments. If $M$ and $Q$ are independent, under regular variation assumptions, we find the precise asymptotics of $-\log\mathbb{P}(R>x)$ as $x\to\infty$. Moreover, we deal with the case of dependent $M$ and $Q$ and give asymptotic bounds for $-\log\mathbb{P}(R>x)$. It turns out that dependence structure between $M$ and $Q$ has a significant impact on the asymptotic rate of logarithmic tails of $R$. Such phenomenon is not observed in the case of heavy-tailed perpetuities.
format Preprint
id arxiv_https___arxiv_org_abs_1711_08912
institution arXiv
publishDate 2017
record_format arxiv
spellingShingle On perpetuities with light tails
Kołodziejek, Bartosz
Probability
Primary 60H25, Secondary 60E99
In the paper we consider the asymptotics of logarithmic tails of a perpetuity $$R \stackrel{d}{=}\sum_{j=1}^\infty Q_j \prod_{k=1}^{j-1}M_k,\qquad(M_n,Q_n)_{n=1}^\infty \mbox{ are i.i.d. copies of }(M,Q),$$ in the case when $\mathbb{P}(M\in[0,1))=1$ and $Q$ has all exponential moments. If $M$ and $Q$ are independent, under regular variation assumptions, we find the precise asymptotics of $-\log\mathbb{P}(R>x)$ as $x\to\infty$. Moreover, we deal with the case of dependent $M$ and $Q$ and give asymptotic bounds for $-\log\mathbb{P}(R>x)$. It turns out that dependence structure between $M$ and $Q$ has a significant impact on the asymptotic rate of logarithmic tails of $R$. Such phenomenon is not observed in the case of heavy-tailed perpetuities.
title On perpetuities with light tails
topic Probability
Primary 60H25, Secondary 60E99
url https://arxiv.org/abs/1711.08912