Fast exact simulation of the first-passage event of a subordinator

Fuente: arXiv
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Main Authors: Cázares, Jorge Ignacio González, Lin, Feng, Mijatović, Aleksandar
Format: Preprint
Published: 2023
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author Cázares, Jorge Ignacio González
Lin, Feng
Mijatović, Aleksandar
author_facet Cázares, Jorge Ignacio González
Lin, Feng
Mijatović, Aleksandar
contents This paper provides an exact simulation algorithm for the sampling from the joint law of the first-passage time, the undershoot and the overshoot of a subordinator crossing a non-increasing boundary. We prove that the running time of this algorithm has finite moments of all positive orders and give an explicit bound on the expected running time in terms of the Lévy measure of the subordinator. This bound provides performance guarantees that make our algorithm suitable for Monte Carlo estimation. We provide a GitHub repository with an implementation of the algorithm in Python and Julia.
format Preprint
id arxiv_https___arxiv_org_abs_2306_06927
institution arXiv
publishDate 2023
record_format arxiv
spellingShingle Fast exact simulation of the first-passage event of a subordinator
Cázares, Jorge Ignacio González
Lin, Feng
Mijatović, Aleksandar
Probability
Computation
60G51, 65C05
This paper provides an exact simulation algorithm for the sampling from the joint law of the first-passage time, the undershoot and the overshoot of a subordinator crossing a non-increasing boundary. We prove that the running time of this algorithm has finite moments of all positive orders and give an explicit bound on the expected running time in terms of the Lévy measure of the subordinator. This bound provides performance guarantees that make our algorithm suitable for Monte Carlo estimation. We provide a GitHub repository with an implementation of the algorithm in Python and Julia.
title Fast exact simulation of the first-passage event of a subordinator
topic Probability
Computation
60G51, 65C05
url https://arxiv.org/abs/2306.06927