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Laws of the iterated logarithm for a class of iterated processes

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Nane, Erkan
Abstract

Let X={X(t),t>=0} be a Brownian motion or a spectrally negative stable process of index 1<[alpha]<2. Let E={E(t),t>=0} be the hitting time of a stable subordinator of index 0<[beta]<1 independent of X. We use a connection between X(E(t)) and the stable subordinator of index [beta]/[alpha] to derive information on the path behavior of X(E(t)). This is an extension of the connection of iterated Brownian motion and ()-stable subordinator due to Bertoin [Bertoin, J., 1996a. Iterated Brownian motion and stable () subordinator. Statist. Probab. Lett., 27, 111-114; Bertoin, J., 1996b, Lévy Processes. Cambridge University Press]. Using this connection, we obtain various laws of the iterated logarithm for X(E(t)). In particular, we establish the law of the iterated logarithm for local time Brownian motion, X(L(t)), where X is a Brownian motion (the case [alpha]=2) and L(t) is the local time at zero of a stable process Y of index 1<[gamma]<=2 independent of X. In this case E([rho]t)=L(t) with [beta]=1-1/[gamma] for some constant [rho]>0. This establishes the lower bound in the law of the iterated logarithm which we could not prove with the techniques of our paper [Meerschaert, M.M., Nane, E., Xiao, Y.. 2008. Large deviations for local time fractional Brownian motion and applications. J. Math. Anal. Appl. 346, 432-445]. We also obtain exact small ball probability for X(E(t)) using ideas from Aurzada and Lifshits [Aurzada, F., Lifshits, M., On the small deviation problem for some iterated processes. preprint: arXiv:0806.2559].

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Article provided by Elsevier in its journal Statistics & Probability Letters.

Volume (Year): 79 (2009)
Issue (Month): 16 (August)
Pages: 1744-1751
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Handle: RePEc:eee:stapro:v:79:y:2009:i:16:p:1744-1751

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This page was last updated on 2009-12-30.


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