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We study the approximation of expectations $\operatorname{E}(f(X))$ for solutions $X$ of stochastic differential equations and functionals $f$ on the path space by means of Monte Carlo algorithms that only use random bits instead of random…

Numerical Analysis · Mathematics 2023-01-10 Michael B. Giles , Mario Hefter , Lukas Mayer , Klaus Ritter

We consider the problem of estimating states and parameters in a model based on a system of coupled stochastic differential equations, based on noisy discrete-time data. Special attention is given to nonlinear dynamics and state-dependent…

Methodology · Statistics 2025-04-01 Uffe Høgsbro Thygesen , Kasper Kristensen

In a recent paper by Kamrani et al. (2024), exponential Euler method for stiff stochastic differential equations with additive fractional Brownian noise was discussed, and the convergence order close to the Hurst parameter H was proved.…

Probability · Mathematics 2024-07-08 Haozhe Chen , Zhaotong Shen , Qian Yu

By using absolutely continuous lower bounds of the L\'evy measure, explicit gradient estimates are derived for the semigroup of the corresponding L\'evy process with a linear drift. A derivative formula is presented for the conditional…

Probability · Mathematics 2011-03-16 Feng-Yu Wang

In this article, we consider the so-called modified Euler scheme for stochastic differential equations (SDEs) driven by fractional Brownian motions (fBm) with Hurst parameter $\frac13<H<\frac12$. This is a first-order time-discrete…

Probability · Mathematics 2017-03-13 Yanghui Liu , Samy Tindel

We consider the problem of numerically estimating expectations of solutions to stochastic differential equations driven by Brownian motions in the commonly occurring small noise regime. We consider (i) standard Monte Carlo methods combined…

Numerical Analysis · Mathematics 2015-06-08 David F. Anderson , Desmond J. Higham , Yu Sun

In this paper numerical methods for solving stochastic differential equations with Markovian switching (SDEwMSs) are developed by pathwise approximation. The proposed family of strong predictor-corrector Euler-Maruyama methods is designed…

Numerical Analysis · Mathematics 2011-03-08 Jun Ye , Haibo Li , Lili Xiao

The large deviations analysis of solutions to stochastic differential equations and related processes is often based on approximation. The construction and justification of the approximations can be onerous, especially in the case where the…

Probability · Mathematics 2008-08-28 Amarjit Budhiraja , Paul Dupuis , Vasileios Maroulas

In this paper, we show an approximation in law of the complex Brownian motion by processes constructed from a stochastic process with independent increments. We give sufficient conditions for the characteristic function of the process with…

Probability · Mathematics 2013-08-28 Xavier Bardina , Carles Rovira

It is well understood that, when numerically simulating SDEs with general noise, achieving a strong convergence rate better than $O(\sqrt{h})$ (where h is the step size) requires the use of certain iterated integrals of Brownian motion,…

Machine Learning · Statistics 2026-01-01 Andraž Jelinčič , Jiajie Tao , William F. Turner , Thomas Cass , James Foster , Hao Ni

We present a numerical method for the approximation of solutions for the class of stochastic differential equations driven by Brownian motions which induce stochastic variation in fixed directions. This class of equations arises naturally…

Numerical Analysis · Mathematics 2010-06-15 David F. Anderson , Jonathan C. Mattingly

For a stochastic differential equation driven by a fractional Brownian motion with Hurst parameter $H> \frac12$ it is known that the classical Euler scheme has the rate of convergence $2H-1$. In this paper we introduce a new numerical…

Probability · Mathematics 2017-03-07 Yaozhong Hu , Yanghui Liu , David Nualart

The efficient management of large-scale queueing networks is critical for a variety of sectors, including healthcare, logistics, and customer service, where system performance has profound implications for operational effectiveness and cost…

Methodology · Statistics 2024-02-22 L. Jeff Hong , Yingda Song , Tan Wang

Modelling extreme events and heavy-tailed phenomena is central to building reliable predictive systems in domains such as finance, climate science, and safety-critical AI. While L\'evy processes provide a natural mathematical framework for…

Machine Learning · Computer Science 2026-05-12 Yaman Kindap , Manfred Opper , Benjamin Dupuis , Umut Simsekli , Tolga Birdal

We consider a slow-fast stochastic differential system with L\'evy noise. We will employ the perturbed test function method to study the normal deviation of the slow-fast system. Our main result states that the deviation can be approximated…

Probability · Mathematics 2024-03-13 Xiaoyu Yang , Yong Xu , Ruifang Wang , Zhe Jiao

This article investigates discrete-time approximations of stochastic integrals driven by semimartingales with jumps via weighted bounded mean oscillation (BMO) approach. This approach enables $L_p$-estimates, $p \in (2, \infty)$, for the…

Probability · Mathematics 2021-12-14 Nguyen Tran Thuan

We derive strong Lp convergence rates for the Euler-Maruyama schemes of Levy-driven SDE using a new dynamic cutting (DC) method with a time-dependent jump threshold. In addition, we present results from numerical simulations comparing the…

Probability · Mathematics 2025-04-17 Denis Platonov , Victoria Knopova

Weak approximations have been developed to calculate the expectation value of functionals of stochastic differential equations, and various numerical discretization schemes (Euler, Milshtein) have been studied by many authors. We present a…

Probability · Mathematics 2009-08-10 Hideyuki Tanaka , Arturo Kohatsu-Higa

We study high-dimensional drift estimation for L\'evy-driven Ornstein--Uhlenbeck processes based on discrete observations. Assuming sparsity of the drift matrix, we analyze Lasso and Slope estimators constructed from approximate likelihoods…

Statistics Theory · Mathematics 2026-03-09 Niklas Dexheimer , Natalia Jeszka

We study the strong rate of convergence of the Euler--Maruyama scheme for a multidimensional stochastic differential equation (SDE) $$ dX_t = b(X_t) \, dt + dL_t, $$ with irregular $\beta$-H\"older drift, $\beta > 0$, driven by a L\'evy…

Probability · Mathematics 2024-01-12 Oleg Butkovsky , Konstantinos Dareiotis , Máté Gerencsér
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