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Series representations for bivariate time-changed L\'evy models

Methodology and Computing in Applied Probability. 2014.
Panov V., Sirotkin I.

In this paper, we analyze a L{\'e}vy model based on two popular concepts - subordination and L{\'e}vy copulas. More precisely, we consider a two-dimensional L{\'e}vy process such that each component is a time-changed (subordinated) Brownian motion and the dependence between processes, which are used for stochastic time change, is described via some L{\'e}vy copula. We prove a series representation for our model, which can be efficiently used for simulation proposes, and provide some practical examples based on real data.

Priority areas: economics mathematics
Language: English
Full text
Keywords: subordinationLevy copulatime-changed Levy process
Publication based on the results of:
Стохастические и функционально-аналитические методы в исследовании сложных динамических процессов в экономике (2014)
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