Hierarchical symmetry selects log-Poisson cascades: classification, uniqueness, and stability

TL;DR

This paper proves that hierarchical symmetry in i.i.d. multiplicative cascades uniquely characterizes log-Poisson distributions, classifies them among infinitely divisible families, and establishes stability under approximation.

Contribution

It provides a characterization, classification, and stability results for log-Poisson cascades based on hierarchical symmetry, a key axiom.

Findings

Hierarchical symmetry uniquely determines log-Poisson cascades.

Log-Poisson class is selected from all infinitely divisible distributions by hierarchical symmetry.

Approximate symmetry implies approximate log-Poisson with explicit Wasserstein bounds.

Abstract

Within i.i.d. multiplicative cascades, a single axiom -- the hierarchical symmetry, a linear contraction on incremental scaling exponents -- is shown to be necessary and sufficient for the cascade multiplier to be log-Poisson. We establish three results: (1) a characterization theorem proving that the hierarchical symmetry uniquely determines the log-Poisson distribution with explicit parameters; (2) a classification theorem proving that the hierarchical symmetry selects exactly the log-Poisson class from the full log-infinitely-divisible family, excluding log-normal, log-stable, and all intermediate generators; and (3) a stability theorem proving that approximate hierarchical symmetry implies approximate log-Poisson, with an explicit $O(\sqrt{\varepsilon})$ Wasserstein bound. The proofs reduce the problem to the Hausdorff moment problem on $[0,1]$ via the change of variables $u = e^{kx}$, where determinacy and stability follow from classical results.