Tail of a linear diffusion with Markov switching
de Saporta, Benoîte ; Yao, Jian-Feng
Ann. Appl. Probab., Tome 15 (2005) no. 1A, p. 992-1018 / Harvested from Project Euclid
Let Y be an Ornstein–Uhlenbeck diffusion governed by a stationary and ergodic Markov jump process X: dYt=a(Xt)Yt dt+σ(Xt) dWt, Y0=y0. Ergodicity conditions for Y have been obtained. Here we investigate the tail propriety of the stationary distribution of this model. A characterization of either heavy or light tail case is established. The method is based on a renewal theorem for systems of equations with distributions on ℝ.
Publié le : 2005-02-14
Classification:  Ornstein–Uhlenbeck diffusion,  Markov switching,  random difference equation,  light tail,  heavy tail,  renewal theory,  Perron–Frobenius theory,  ladder heights,  60J60,  60J75,  60H25,  60K05,  60J15
@article{1107271676,
     author = {de Saporta, Beno\^\i te and Yao, Jian-Feng},
     title = {Tail of a linear diffusion with Markov switching},
     journal = {Ann. Appl. Probab.},
     volume = {15},
     number = {1A},
     year = {2005},
     pages = { 992-1018},
     language = {en},
     url = {http://dml.mathdoc.fr/item/1107271676}
}
de Saporta, Benoîte; Yao, Jian-Feng. Tail of a linear diffusion with Markov switching. Ann. Appl. Probab., Tome 15 (2005) no. 1A, pp.  992-1018. http://gdmltest.u-ga.fr/item/1107271676/