Instruct: Identify the main and secondary category of Arxiv papers based on the titles and abstracts
Query: Diffusion limits for a Markov modulated binomial counting process   In this paper we study limit behavior for a Markov-modulated (MM) binomial
counting process, also called a binomial counting process under regime
switching. Such a process naturally appears in the context of credit risk when
multiple obligors are present. Markov-modulation takes place when the
failure/default rate of each individual obligor depends on an underlying Markov
chain. The limit behavior under consideration occurs when the number of
obligors increases unboundedly, and/or by accelerating the modulating Markov
process, called rapid switching. We establish diffusion approximations,
obtained by application of (semi)martingale central limit theorems. Depending
on the specific circumstances, different approximations are found.

18
The categories of this paper are: econ
34
The categories of this paper are: chem-ph
14
The categories of this paper are: math-ph
29
The categories of this paper are: funct-an
20
The categories of this paper are: acc-phys
25
The categories of this paper are: patt-sol
28
The categories of this paper are: alg-geom
8
The categories of this paper are: hep-ex
27
The categories of this paper are: comp-gas
7
The categories of this paper are: hep-th
35
The categories of this paper are: mtrl-th
31
The categories of this paper are: ao-sci
0
The categories of this paper are: hep-ph
37
The categories of this paper are: supr-con
1
The categories of this paper are: cs
15
The categories of this paper are: nucl-ex