Solutions of Stochastic Differential Equations obeying the Law of the Iterated Logarithm, with applications to financial markets
Dublin Core | PKP Metadata Items | Metadata for this Document | |
1. | Title | Title of document | Solutions of Stochastic Differential Equations obeying the Law of the Iterated Logarithm, with applications to financial markets |
2. | Creator | Author's name, affiliation, country | John A. D. Appleby; Dublin City University, Ireland |
2. | Creator | Author's name, affiliation, country | Huizhong Wu; Dublin City University, Ireland |
3. | Subject | Discipline(s) | |
3. | Subject | Keyword(s) | stochastic differential equations; Brownian motion; Law of the Iterated Logarithm; Motoo's theorem; stochastic comparison principle; stationary processes; inefficient market |
3. | Subject | Subject classification | 60H10; 60F10; 91B28 |
4. | Description | Abstract | By using a change of scale and space, we study a class of stochastic differential equations (SDEs) whose solutions are drift--perturbed and exhibit asymptotic behaviour similar to standard Brownian motion. In particular sufficient conditions ensuring that these processes obey the Law of the Iterated Logarithm (LIL) are given. Ergodic--type theorems on the average growth of these non-stationary processes, which also depend on the asymptotic behaviour of the drift coefficient, are investigated. We apply these results to inefficient financial market models. The techniques extend to certain classes of finite--dimensional equation. |
5. | Publisher | Organizing agency, location | |
6. | Contributor | Sponsor(s) | We gratefully acknowledge the support of this work by Science Foundation Ireland under the Research Frontiers Programme grant RFP/MAT/0018 ``Stochastic Functional Differential Equations with Long Memory'' and under the Mathematics Initiative 2007 grant 07 |
7. | Date | (YYYY-MM-DD) | 2009-04-27 |
8. | Type | Status & genre | Peer-reviewed Article |
8. | Type | Type | |
9. | Format | File format | |
10. | Identifier | Uniform Resource Identifier | http://ejp.ejpecp.org/article/view/642 |
10. | Identifier | Digital Object Identifier | 10.1214/EJP.v14-642 |
11. | Source | Journal/conference title; vol., no. (year) | Electronic Journal of Probability; Vol 14 |
12. | Language | English=en | |
14. | Coverage | Geo-spatial location, chronological period, research sample (gender, age, etc.) | |
15. | Rights | Copyright and permissions | The Electronic Journal of Probability applies the Creative Commons Attribution License (CCAL) to all articles we publish in this journal. Under the CCAL, authors retain ownership of the copyright for their article, but authors allow anyone to download, reuse, reprint, modify, distribute, and/or copy articles published in EJP, so long as the original authors and source are credited. This broad license was developed to facilitate open access to, and free use of, original works of all types. Applying this standard license to your work will ensure your right to make your work freely and openly available. Summary of the Creative Commons Attribution License You are free
|