Complete corrected diffusion approximations for the maximum of a random walk
Blanchet, Jose ; Glynn, Peter
Ann. Appl. Probab., Tome 16 (2006) no. 1, p. 951-983 / Harvested from Project Euclid
Consider a random walk (Sn:n≥0) with drift −μ and S0=0. Assuming that the increments have exponential moments, negative mean, and are strongly nonlattice, we provide a complete asymptotic expansion (in powers of μ>0) that corrects the diffusion approximation of the all time maximum M=maxn≥0Sn. Our results extend both the first-order correction of Siegmund [Adv. in Appl. Probab. 11 (1979) 701–719] and the full asymptotic expansion provided in the Gaussian case by Chang and Peres [Ann. Probab. 25 (1997) 787–802]. We also show that the Cramér–Lundberg constant (as a function of μ) admits an analytic extension throughout a neighborhood of the origin in the complex plane ℂ. Finally, when the increments of the random walk have nonnegative mean μ, we show that the Laplace transform, Eμexp(−bR(∞)), of the limiting overshoot, R(∞), can be analytically extended throughout a disc centered at the origin in ℂ × ℂ (jointly for both b and μ). In addition, when the distribution of the increments is continuous and appropriately symmetric, we show that EμSτ [where τ is the first (strict) ascending ladder epoch] can be analytically extended to a disc centered at the origin in ℂ, generalizing the main result in [Ann. Probab. 25 (1997) 787–802] and extending a related result of Chang [Ann. Appl. Probab. 2 (1992) 714–738].
Publié le : 2006-05-14
Classification:  Corrected diffusion approximations,  random walks,  ladder heights,  sequential analysis,  single-server queue,  60G50,  60F05,  62L10,  68M20
@article{1151592256,
     author = {Blanchet, Jose and Glynn, Peter},
     title = {Complete corrected diffusion approximations for the maximum of a random walk},
     journal = {Ann. Appl. Probab.},
     volume = {16},
     number = {1},
     year = {2006},
     pages = { 951-983},
     language = {en},
     url = {http://dml.mathdoc.fr/item/1151592256}
}
Blanchet, Jose; Glynn, Peter. Complete corrected diffusion approximations for the maximum of a random walk. Ann. Appl. Probab., Tome 16 (2006) no. 1, pp.  951-983. http://gdmltest.u-ga.fr/item/1151592256/