• Event Date: February 6, 2015
  • Event End Date: February 6, 2015
  • Event Start Time: 12:00 PM
  • Event End Time: 1:00 PM
  • Event Location: Hill 124
  • Event Type: Mathematical Finance and Probability Seminars
  • Extra Info: Alla Sikorskii, Michigan State University

Speaker: Alla Sikorskii, Michigan State University

ABSTRACT

Fractional differential equations are an important and useful tool in many areas of science and engineering. In a heterogeneous environment, the coefficients of the diffusion equation will naturally vary in space. Pearson diffusions form a tractable class of variable coefficient diffusion models with polynomial coefficients. Fractional Pearson diffusions are governed by the corresponding time-fractional diffusion equation.

We provide explicit strong solutions for fractional Pearson diffusion equations, using spectral methods and stochastic solutions, using a non-Markovian time change. We also present the correlation structure of fractional Pearson diffusions in steady state.