A Meyer-Itô Formula for Stable Processes via Fractional Calculus

Fuente: arXiv
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Main Authors: Cano, Alejandro Santoyo, Bravo, Gerónimo Uribe
Format: Preprint
Published: 2022
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author Cano, Alejandro Santoyo
Bravo, Gerónimo Uribe
author_facet Cano, Alejandro Santoyo
Bravo, Gerónimo Uribe
contents The infinitesimal generator of a one-dimensional strictly $α$-stable process can be represented as a weighted sum of (right and left) Riemann-Liouville fractional derivatives of order $α$ and one obtains the fractional Laplacian in the case of symmetric stable processes. Using this relationship, we compute the inverse of the infinitesimal generator on Lizorkin space, from which we can recover the potential if $α\in (0,1)$ and the recurrent potential if $α\in (1,2)$. The inverse of the infinitesimal generator is expressed in terms of a linear combination of (right and left) Riemann-Liouville fractional integrals of order $α$. One can then state a class of functions that give semimartingales when applied to strictly stable processes and state a Meyer-Itô theorem with a non-zero (occupational) local time term, providing a generalization of the Tanaka formula given by Tsukada (2019). This result is used to find a Doob-Meyer (or semimartingale) decomposition for $|X_t - x|^γ$ with $X$ a recurrent strictly stable process of index $α$ and $γ\in (α-1,α)$, generalizing the work of Engelbert and Kurenok (2019) to the asymmetric case.
format Preprint
id arxiv_https___arxiv_org_abs_2209_01184
institution arXiv
publishDate 2022
record_format arxiv
spellingShingle A Meyer-Itô Formula for Stable Processes via Fractional Calculus
Cano, Alejandro Santoyo
Bravo, Gerónimo Uribe
Probability
Classical Analysis and ODEs
26A33, 60G18, 60G52
The infinitesimal generator of a one-dimensional strictly $α$-stable process can be represented as a weighted sum of (right and left) Riemann-Liouville fractional derivatives of order $α$ and one obtains the fractional Laplacian in the case of symmetric stable processes. Using this relationship, we compute the inverse of the infinitesimal generator on Lizorkin space, from which we can recover the potential if $α\in (0,1)$ and the recurrent potential if $α\in (1,2)$. The inverse of the infinitesimal generator is expressed in terms of a linear combination of (right and left) Riemann-Liouville fractional integrals of order $α$. One can then state a class of functions that give semimartingales when applied to strictly stable processes and state a Meyer-Itô theorem with a non-zero (occupational) local time term, providing a generalization of the Tanaka formula given by Tsukada (2019). This result is used to find a Doob-Meyer (or semimartingale) decomposition for $|X_t - x|^γ$ with $X$ a recurrent strictly stable process of index $α$ and $γ\in (α-1,α)$, generalizing the work of Engelbert and Kurenok (2019) to the asymmetric case.
title A Meyer-Itô Formula for Stable Processes via Fractional Calculus
topic Probability
Classical Analysis and ODEs
26A33, 60G18, 60G52
url https://arxiv.org/abs/2209.01184