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Weak Limits of Random Coefficient Autoregressive Processes and their Application in Ruin Theory. (arXiv:1907.01828v1 [math.PR])

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We prove that a large class of discrete-time insurance surplus processes converge weakly to a generalized Ornstein-Uhlenbeck process, under a suitable re-normalization and when the time-step goes to 0. Motivated by ruin theory, we use this result to obtain approximations for the moments, the ultimate ruin probability and the discounted penalty function of the discrete-time process.


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