Driven by Brownian motion Cox-Ingersoll-Ross and squared Bessel processes: interaction and phase transition

Fuente: arXiv
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Main Authors: Mishura, Yuliya, Ralchenko, Kostiantyn, Kushnirenko, Svitlana
Format: Preprint
Published: 2024
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author Mishura, Yuliya
Ralchenko, Kostiantyn
Kushnirenko, Svitlana
author_facet Mishura, Yuliya
Ralchenko, Kostiantyn
Kushnirenko, Svitlana
contents This paper studies two related stochastic processes driven by Brownian motion: the Cox-Ingersoll-Ross (CIR) process and the Bessel process. We investigate their shared and distinct properties, focusing on time-asymptotic growth rates, distance between the processes in integral norms, and parameter estimation. The squared Bessel process is shown to be a phase transition of the CIR process and can be approximated by a sequence of CIR processes. Differences in stochastic stability are also highlighted, with the Bessel process displaying instability, while the CIR process remains ergodic and stable.
format Preprint
id arxiv_https___arxiv_org_abs_2410_13231
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Driven by Brownian motion Cox-Ingersoll-Ross and squared Bessel processes: interaction and phase transition
Mishura, Yuliya
Ralchenko, Kostiantyn
Kushnirenko, Svitlana
Probability
60H10
This paper studies two related stochastic processes driven by Brownian motion: the Cox-Ingersoll-Ross (CIR) process and the Bessel process. We investigate their shared and distinct properties, focusing on time-asymptotic growth rates, distance between the processes in integral norms, and parameter estimation. The squared Bessel process is shown to be a phase transition of the CIR process and can be approximated by a sequence of CIR processes. Differences in stochastic stability are also highlighted, with the Bessel process displaying instability, while the CIR process remains ergodic and stable.
title Driven by Brownian motion Cox-Ingersoll-Ross and squared Bessel processes: interaction and phase transition
topic Probability
60H10
url https://arxiv.org/abs/2410.13231