Markov multi-variate survival indicators for default simulation as a new characterization of the Marshall-Olkin law
Dokumenttyp:
Zeitschriftenaufsatz
Autor(en):
Brigo, D.; Mai, J.-F.; Scherer, M.
Nicht-TUM Koautoren:
ja
Kooperation:
international
Abstract:
A new characterization of the Marshall–Olkin distribution is provided: all sub-vectors of the associated survival indicators are continuous-time Markov chains. This property is crucial to overcome practical limitations for the modeling of high-dimensional default times (rebalancing, iterative simulation, consistent sub-portfolios).