Affine Jump-Diffusion

Affine Jump-Diffusions: Stochastic Stability and Limit Theorems

Affine jump-diffusions constitute a large class of continuous-time stochastic models that are particularly popular in finance and economics due to their analytical tractability. Methods for parameter estimation for such processes require ergodicity …

Affine Point Processes: Approximation and Efficient Simulation

We establish a central limit theorem and a large deviations principle for affine point processes, which are stochastic models of correlated event timing widely used in finance and economics. These limit results generate closed-form approximations to …