Stochastic representation

A new method to construct high-dimensional copulas with Bernoulli and Coxian-2 distributions

We propose an approach to construct a new family of generalized Farlie–Gumbel–Morgenstern (GFGM) copulas that naturally scales to high dimensions. A GFGM copula can model moderate positive and negative dependence, cover different types of …

Risk aggregation with FGM copulas

We offer a new perspective on risk aggregation with FGM copulas. Along the way, we discover new results and revisit existing ones, providing simpler formulas than one can find in the existing literature. This paper builds on two novel representations …

Stochastic representation of FGM copulas using multivariate Bernoulli random variables

A one-to-one correspondence between Fréchet's class of multivariate Bernoulli distribution with symmetric marginals and the well-known family of Farlie-Gumbel-Morgenstern (FGM) copulas is established. A new stochastic representation of the family of …