A Joint Density Function in Phase-Type (2) Risk Model

A Joint Density Function in Phase-Type (2) Risk Model

Year:    2012

Author:    Huai Xu, Ling Tang

Communications in Mathematical Research , Vol. 28 (2012), Iss. 4 : pp. 349–358

Abstract

In this paper, we consider a Gerber-Shiu discounted penalty function in Sparre Andersen risk process in which claim inter-arrival times have a phase-type (2) distribution, a distribution with a density satisfying a second order linear differential equation. By conditioning on the time and the amount of the first claim, we derive a Laplace transform of the Gerber-Shiu discounted penalty function, and then we consider the joint density function of the surplus prior to ruin and the deficit at ruin and some ruin related problems. Finally, we give a numerical example to illustrate the application of the results.

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Journal Article Details

Publisher Name:    Global Science Press

Language:    English

DOI:    https://doi.org/2012-CMR-19036

Communications in Mathematical Research , Vol. 28 (2012), Iss. 4 : pp. 349–358

Published online:    2012-01

AMS Subject Headings:    Global Science Press

Copyright:    COPYRIGHT: © Global Science Press

Pages:    10

Keywords:    Gerber-Shiu discounted penalty function phase-type (2) distribution surplus prior to ruin deficit at ruin.

Author Details

Huai Xu

Ling Tang