Affine Processes on Symmetric Cones

Christa Cuchiero, Martin Keller-Ressel, Eberhard Mayerhofer, Josef Teichmann

Research output: Contribution to journalArticlepeer-review

Abstract

We consider affine Markov processes taking values in convex cones. In particular, we characterize all affine processes taking values in irreducible symmetric cones in terms of certain Lévy–Khintchine triplets. This is the natural, coordinate-free formulation of the theory of Wishart processes on positive semidefinite matrices, as put forward by Bru (J Theor Probab 4(4):725–751, 1991) and Cuchiero et al. (Ann Appl Probab 21(2):397–463, 2011), in the more general context of symmetric cones, which also allows for simpler, alternative proofs.

Original languageEnglish
Pages (from-to)359-422
Number of pages64
JournalJournal of Theoretical Probability
Volume29
Issue number2
DOIs
Publication statusPublished - 1 Jun 2016
Externally publishedYes

Keywords

  • Affine processes
  • Non-central Wishart distribution
  • Symmetric cones
  • Wishart processes

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