# Dynamics of a mean-reverting stochastic volatility model with regime switching

## TL;DR

This paper studies a mean-reverting stochastic volatility model with regime switching, providing conditions for solutions' existence, boundedness, recurrence, and stationary distribution, with simulations verifying the theoretical results.

## Contribution

It extends existing results by establishing new conditions for the global positivity, boundedness, and stationary distribution of the regime-switching volatility model.

## Key findings

- Conditions for global positive solutions
- Criteria for asymptotic boundedness in pth moment
- Existence of stationary distribution verified by simulation

## Abstract

In this paper, we consider a mean-reverting stochastic volatility equation with regime switching, and present some sufficient conditions for the existence of global positive solution, asymptotic boundedness in pth moment, positive recurrence and existence of stationary distribution of this equation. Some results obtained in this paper extend the ones in literature. Example is given to verify the results by simulation.