On asymptotic errors in discretization of processes
Jacod, J. ; Jakubowski, A. ; Mémin, J.
Ann. Probab., Tome 31 (2003) no. 1, p. 592-608 / Harvested from Project Euclid
We study the rate at which the difference $X^n_t=X_t-X_{[nt]/n}$ between a process $X$ and its time-discretization converges. When $X$ is a continuous semimartingale it is known that, under appropriate assumptions, the rate is $\sqrt{n}$, so we focus here on the discontinuous case. Then $\alpha_nX^n$ explodes for any sequence $\alpha_n$ going to infinity, so we consider "integrated errors'' of the form $Y^n_t=\int_0^tX^n_s\,ds$ or $Z^{n,p}_t=\int_0^t|X^n_s|^p\,ds$ for $p\in(0,\infty)$: we essentially prove that the variables $\sup_{s\leq t}|nY^n_s|$ and $\sup_{s\leq t}nZ^{n,p}_s$ are tight for any finite $t$ when $X$ is an arbitrary semimartingale, provided either $p\geq2$ or\break $p\in(0,2)$ and $X$ has no continuous martingale part and the sum $\sum_{s\leq t}|\Delta X_s|^p$ converges a.s. for all $t<\infty$, and in addition $X$ is the sum of its jumps when $p<1$. Under suitable additional assumptions, we even prove that the discretized processes $nY^n_{[nt]/n}$ and $nZ^{n,p}_{[nt]/n}$\vadjust{\vspace{1pt}} converge in law to nontrivial processes which are explicitly given. ¶ As a by-product, we also obtain a generalization of Itö's formula for functions that are not twice continuously differentiable and which may be of interest by itself.
Publié le : 2003-04-14
Classification:  Discretization,  semimartingales,  Lévy processes,  60F17,  60H99
@article{1048516529,
     author = {Jacod, J. and Jakubowski, A. and M\'emin, J.},
     title = {On asymptotic errors in discretization of processes},
     journal = {Ann. Probab.},
     volume = {31},
     number = {1},
     year = {2003},
     pages = { 592-608},
     language = {en},
     url = {http://dml.mathdoc.fr/item/1048516529}
}
Jacod, J.; Jakubowski, A.; Mémin, J. On asymptotic errors in discretization of processes. Ann. Probab., Tome 31 (2003) no. 1, pp.  592-608. http://gdmltest.u-ga.fr/item/1048516529/