It is crucial to check validation of any statistical model after fitting it for a given set of data. In Bayesian statistics, a researcher can check the fit of the model using a variety of strategies. In this paper we consider two major aspects, first checking that the posterior inferences are...

In this paper, we are concerned with centered Markov Additive Processes {(Xt,Yt)}t∈T where the driving Markov process {Xt}t∈T has a finite state space. Under suitable conditions, we provide a local limit theorem for the density of the absolutely continuous part of the probability...

A Gaussian approximation of the stochastic traffic flow model of Jabari and Liu (2012) is proposed. The Gaussian approximation is characterized by deterministic mean and covariance dynamics; the mean dynamics are those of the Godunov scheme. By deriving the Gaussian model, as opposed to assuming...

In the actuarial literature, it has become common practice to model future capital returns and mortality rates stochastically in order to capture market risk and forecasting risk. Although interest rates often should and mortality rates always have to be non-negative, many authors use stochastic...