Sample-Path Large Deviations for Lévy Processes and Random Walks with Lognormal Increments

Fuente: arXiv
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Autori principali: Su, Zhe, Rhee, Chang-Han
Natura: Preprint
Pubblicazione: 2024
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author Su, Zhe
Rhee, Chang-Han
author_facet Su, Zhe
Rhee, Chang-Han
contents The large deviations theory for heavy-tailed processes has seen significant advances in the recent past. In particular, Rhee et al. (2019) and Bazhba et al. (2020) established large deviation asymptotics at the sample-path level for Lévy processes and random walks with regularly varying and (heavy-tailed) Weibull-type increments. This leaves the lognormal case -- one of the three most prominent classes of heavy-tailed distributions, alongside regular variation and Weibull -- open. This article establishes the \emph{extended large deviation principle} (extended LDP) at the sample-path level for one-dimensional Lévy processes and random walks with lognormal-type increments. Building on these results, we also establish the extended LDPs for multi-dimensional processes with independent coordinates. We demonstrate the sharpness of these results by constructing counterexamples, thereby proving that our results cannot be strengthened to a standard LDP under $J_1$ topology and $M_1'$ topology.
format Preprint
id arxiv_https___arxiv_org_abs_2410_20799
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Sample-Path Large Deviations for Lévy Processes and Random Walks with Lognormal Increments
Su, Zhe
Rhee, Chang-Han
Probability
60F10
The large deviations theory for heavy-tailed processes has seen significant advances in the recent past. In particular, Rhee et al. (2019) and Bazhba et al. (2020) established large deviation asymptotics at the sample-path level for Lévy processes and random walks with regularly varying and (heavy-tailed) Weibull-type increments. This leaves the lognormal case -- one of the three most prominent classes of heavy-tailed distributions, alongside regular variation and Weibull -- open. This article establishes the \emph{extended large deviation principle} (extended LDP) at the sample-path level for one-dimensional Lévy processes and random walks with lognormal-type increments. Building on these results, we also establish the extended LDPs for multi-dimensional processes with independent coordinates. We demonstrate the sharpness of these results by constructing counterexamples, thereby proving that our results cannot be strengthened to a standard LDP under $J_1$ topology and $M_1'$ topology.
title Sample-Path Large Deviations for Lévy Processes and Random Walks with Lognormal Increments
topic Probability
60F10
url https://arxiv.org/abs/2410.20799