Maximum penalized quasi-likelihood estimation of the diffusion function

We develop a maximum penalized quasi-likelihood estimator for estimating in a nonparametric way the diffusion function of a diffusion process, as an alternative to more traditional kernel-based estimators. After developing a numerical scheme for computing the maximizer of the penalized maximum quasi-likelihood function, we study the asymptotic properties of our estimator by way of simulation. Under the assumption that overnight London Interbank Offered Rates (LIBOR); the USD/EUR, USD/GBP, JPY/USD, and EUR/USD nominal exchange rates; and 1-month, 3-month, and 30-year Treasury bond yields are generated by diffusion processes, we use our numerical scheme to estimate the diffusion function.Comment: 17 pages, 4 figures, revised versio

Quantum Sensor Miniaturization

The classical bound on image resolution defined by the Rayleigh limit can be beaten by exploiting the properties of quantum mechanical entanglement. If entangled photons are used as signal states, the best possible resolution is instead given by the Heisenberg limit, an improvement proportional to the number of entangled photons in the signal. In this paper we present a novel application of entanglement by showing that the resolution obtained by an imaging system utilizing separable photons can be achieved by an imaging system making use of entangled photons, but with the advantage of a smaller aperture, thus resulting in a smaller and lighter system. This can be especially valuable in satellite imaging where weight and size play a vital role.Comment: 3 pages, 1 figure. Accepted for publication in Photonics Technology Letter