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Dettagli Bibliografici
Autori principali: Jabbari, Rofeide, Olivares, Pablo
Natura: Preprint
Pubblicazione: 2024
Soggetti:
Accesso online:https://arxiv.org/abs/2411.19192
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Sommario:
  • 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.