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On the singular limit of solutions to the Cox-Ingersoll-Ross interest rate model with stochastic volatility

Beáta Stehlíková, Daniel Ševčovič (2009)

Kybernetika

In this paper we are interested in term structure models for pricing zero coupon bonds under rapidly oscillating stochastic volatility. We analyze solutions to the generalized Cox–Ingersoll–Ross two factors model describing clustering of interest rate volatilities. The main goal is to derive an asymptotic expansion of the bond price with respect to a singular parameter representing the fast scale for the stochastic volatility process. We derive the second order asymptotic expansion of a solution...

On the singular values of random matrices

Shahar Mendelson, Grigoris Paouris (2014)

Journal of the European Mathematical Society

We present an approach that allows one to bound the largest and smallest singular values of an N × n random matrix with iid rows, distributed according to a measure on n that is supported in a relatively small ball and linear functionals are uniformly bounded in L p for some p > 8 , in a quantitative (non-asymptotic) fashion. Among the outcomes of this approach are optimal estimates of 1 ± c n / N not only in the case of the above mentioned measure, but also when the measure is log-concave or when it a product measure...

On the small maximal flows in first passage percolation

Marie Théret (2008)

Annales de la faculté des sciences de Toulouse Mathématiques

We consider the standard first passage percolation on d : with each edge of the lattice we associate a random capacity. We are interested in the maximal flow through a cylinder in this graph. Under some assumptions Kesten proved in 1987 a law of large numbers for the rescaled flow. Chayes and Chayes established that the large deviations far away below its typical value are of surface order, at least for the Bernoulli percolation and cylinders of certain height. Thanks to another approach we extend...

On the small time asymptotics of the two-dimensional stochastic Navier–Stokes equations

Tiange Xu, Tusheng Zhang (2009)

Annales de l'I.H.P. Probabilités et statistiques

In this paper, we establish a small time large deviation principle (small time asymptotics) for the two-dimensional stochastic Navier–Stokes equations driven by multiplicative noise, which not only involves the study of the small noise, but also the investigation of the effect of the small, but highly nonlinear, unbounded drifts.

On the spectral analysis of second-order Markov chains

Persi Diaconis, Laurent Miclo (2013)

Annales de la faculté des sciences de Toulouse Mathématiques

Second order Markov chains which are trajectorially reversible are considered. Contrary to the reversibility notion for usual Markov chains, no symmetry property can be deduced for the corresponding transition operators. Nevertheless and even if they are not diagonalizable in general, we study some features of their spectral decompositions and in particular the behavior of the spectral gap under appropriate perturbations is investigated. Our quantitative and qualitative results confirm that the...

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