We consider the convexity correction in a multi-factor SABR type stochastic volatility model, in which the volatility and the short-term forward rate are modeled as independent factors. In general, the convexity correction is not analytically tractable in a multi-factor model, but based on the...

We develop a nonparametric test to check whether a process can be represented by a stochastic differential equation driven only by a Brownian motion. Our testing procedure utilizes the infinitesimal operator-based martingale characterization combined with a generalized spectral approach. Such a...

An overview of energy consumption pattern by available data and the analysis of some relevant aspects of energy policy in rural China are presented in this paper. The most obvious trend is the steady decreased proportion of biomass use, from 70.79% to 30.95%, and increased percentage of coal and...

A new kind of natural gas-based polygeneration system for methanol and power production is proposed in this paper. With the sequential connection between chemical production and power generation, the new system adopts innovative integration of partial-reforming and partial-recycle scheme in...