Series representations for bivariate time-changed L{é}vy models

preprint2015arXivOpen access

Abstract

In this paper, we analyze a L{é}vy model based on two popular concepts - subordination and L{é}vy copulas. More precisely, we consider a two-dimensional L{é}vy process such that each component is a time-changed (subordinated) Brownian motion and the dependence between subordinators is described via some L{é}vy copula. We prove a series representation for our model, which can be efficiently used for simulation purposes, and provide some practical examples based on real data

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