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ruin (version 0.1.1)

CramerLundbergCapitalInjections-class: A formal S4 class CramerLundbergCapitalInjections

Description

A formal S4 class representation of Cramer-Lundberg's extension that includes capital injections.

Arguments

Slots

initial_capital

a length one numeric non-negative vector specifying an initial capital.

premium_rate

a length one numeric non-negative vector specifying a premium rate.

claim_poisson_arrival_rate

a length one numeric positive vector specifying the rate of the Poisson process of claims' arrivals.

claim_size_generator

a function indicating the random generator of claims' sizes.

claim_size_parameters

a named list containing parameters for the random generator of claims' sizes.

capital_injection_poisson_rate

a length one numeric positive vector specifying the rate of the Poisson process of capital injections' arrivals.

capital_injection_size_generator

a function indicating the random generator of capital injections' sizes.

capital_injection_size_parameters

a named list containing parameters for the random generator of capital injections' sizes.

Details

The model is defined as follows: $$X_(t) = u + ct + \sum_{k=1}^{N^{(+)}(t)} Y^{(+)}_k - \sum_{i=1}^{N^{(-)}(t)} Y^{(-)}_i$$ where \(u\) is the initial capital (initial_capital), \(c\) is the premium rate (premium_rate), \(N^{(+)}(t)\) is the Poisson process of positive jumps (capital injections) with intensity \(\lambda^{(+)}\) (capital_injection_poisson_rate), \(Y^{(+)}_k\) are iid capital injections' sizes (capital_injection_size_generator and capital_injection_size_parameters), \(N^{(-)}(t)\) is the Poisson process of negative jumps (claims) with intensity \(\lambda^{(-)}\) (claim_poisson_arrival_rate), \(Y^{(-)}_i\) are iid claim sizes (claim_size_generator and claim_size_parameters).

Objects of class can be created only by using the constructor CramerLundbergCapitalInjections.

References

Breuera L., Badescu A. L. A generalised Gerber Shiu measure for Markov-additive risk processes with phase-type claims and capital injections. Scandinavian Actuarial Journal, 2014(2): 93-115, 2014.

See Also

CramerLundbergCapitalInjections