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Autori principali: Hisakado, Masato, Mori, Shintaro
Natura: Preprint
Pubblicazione: 2025
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Accesso online:https://arxiv.org/abs/2505.13822
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author Hisakado, Masato
Mori, Shintaro
author_facet Hisakado, Masato
Mori, Shintaro
contents This study considers the Merton model with temporal correlation. We show the Merton model becomes Poisson process with the log-normal distributed intensity function in the limit. We discuss the relation between this model and Hawkes process. In this model we confirm the super-normal transition when the temporal correlation is power case. The phase transition is same as seen before the limit. We apply this model to the default portfolios and find that the power decay model provides better generalization performance for the long term data.
format Preprint
id arxiv_https___arxiv_org_abs_2505_13822
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Merton model and Poisson process with Log Normal intensity function
Hisakado, Masato
Mori, Shintaro
Risk Management
Probability
This study considers the Merton model with temporal correlation. We show the Merton model becomes Poisson process with the log-normal distributed intensity function in the limit. We discuss the relation between this model and Hawkes process. In this model we confirm the super-normal transition when the temporal correlation is power case. The phase transition is same as seen before the limit. We apply this model to the default portfolios and find that the power decay model provides better generalization performance for the long term data.
title Merton model and Poisson process with Log Normal intensity function
topic Risk Management
Probability
url https://arxiv.org/abs/2505.13822