Conditions for certain ruin for the generalised Ornstein-Uhlenbeck process and the structure of the upper and lower bounds

Damien Bankovsky*

*Corresponding author for this work

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    1 Citation (Scopus)

    Abstract

    For a bivariate Lévy process (ξt, ηt)t ≥ 0 the generalised Ornstein-Uhlenbeck (GOU) process is defined as Vt {colon equals} eξt (z + ∫0t e- ξs - d ηs), t ≥ 0, where z ∈ R. We present conditions on the characteristic triplet of (ξ, η) which ensure certain ruin for the GOU. We present a detailed analysis on the structure of the upper and lower bounds and the sets of values on which the GOU is almost surely increasing, or decreasing. This paper is the sequel to Bankovsky and Sly (2008) [2], which stated conditions for zero probability of ruin, and completes a significant aspect of the study of the GOU.

    Original languageEnglish
    Pages (from-to)255-280
    Number of pages26
    JournalStochastic Processes and their Applications
    Volume120
    Issue number2
    DOIs
    Publication statusPublished - Feb 2010

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