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Hauptverfasser: Jabbari, Rofeide, Olivares, Pablo
Format: Preprint
Veröffentlicht: 2024
Schlagworte:
Online-Zugang:https://arxiv.org/abs/2411.19192
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author Jabbari, Rofeide
Olivares, Pablo
author_facet Jabbari, Rofeide
Olivares, Pablo
contents In this paper we extend models for the dynamic of the temperatures by considering random switching between Levy noises instead of Brownian motions, with a mean-reverting movement towards a seasonal periodic function. The use of Levy noises allows for jumps, capturing, together with the regime changes, sudden and relatively persistent oscillations in the weather. An approximated close-form expression for the characteristic function of the temperature process under an Esscher transform is given.
format Preprint
id arxiv_https___arxiv_org_abs_2411_19192
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Characteristic function and Esscher transform of a switching Levy model for the temperature dynamic
Jabbari, Rofeide
Olivares, Pablo
Probability
60H10, 65C30
G.3
In this paper we extend models for the dynamic of the temperatures by considering random switching between Levy noises instead of Brownian motions, with a mean-reverting movement towards a seasonal periodic function. The use of Levy noises allows for jumps, capturing, together with the regime changes, sudden and relatively persistent oscillations in the weather. An approximated close-form expression for the characteristic function of the temperature process under an Esscher transform is given.
title Characteristic function and Esscher transform of a switching Levy model for the temperature dynamic
topic Probability
60H10, 65C30
G.3
url https://arxiv.org/abs/2411.19192