On the area between a Lévy process with secondary jump inputs and its reflected version

Fuente: arXiv
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Autori principali: Kella, Offer, Mandjes, Michel
Natura: Preprint
Pubblicazione: 2023
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author Kella, Offer
Mandjes, Michel
author_facet Kella, Offer
Mandjes, Michel
contents We study the stochastic properties of the area under some function of the difference between (i) a spectrally positive Lévy process $W_t^x$ that jumps to a level $x>0$ whenever it hits zero, and (ii) its reflected version $W_t$. Remarkably, even though the analysis of each of these areas is challenging, we succeed in attaining explicit expressions for their difference. The main result concerns the Laplace-Stieltjes transform of the integral $A_x$ of (a function of) the distance between $W_t^x$ and $W_t$ until $W_t^x$ hits zero. This result is extended in a number of directions, including the area between $A_x$ and $A_y$ and a Gaussian limit theorem. We conclude the paper with an inventory problem for which our results are particularly useful.
format Preprint
id arxiv_https___arxiv_org_abs_2311_08753
institution arXiv
publishDate 2023
record_format arxiv
spellingShingle On the area between a Lévy process with secondary jump inputs and its reflected version
Kella, Offer
Mandjes, Michel
Probability
60G51 (Primary) 60K25(Secondary)
We study the stochastic properties of the area under some function of the difference between (i) a spectrally positive Lévy process $W_t^x$ that jumps to a level $x>0$ whenever it hits zero, and (ii) its reflected version $W_t$. Remarkably, even though the analysis of each of these areas is challenging, we succeed in attaining explicit expressions for their difference. The main result concerns the Laplace-Stieltjes transform of the integral $A_x$ of (a function of) the distance between $W_t^x$ and $W_t$ until $W_t^x$ hits zero. This result is extended in a number of directions, including the area between $A_x$ and $A_y$ and a Gaussian limit theorem. We conclude the paper with an inventory problem for which our results are particularly useful.
title On the area between a Lévy process with secondary jump inputs and its reflected version
topic Probability
60G51 (Primary) 60K25(Secondary)
url https://arxiv.org/abs/2311.08753