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Statistical inference for stochastic processes based on high-frequency observations has been an active research area for more than two decades. One of the most well-known and widely studied problems has been the estimation of the quadratic…

Econometrics · Economics 2024-04-23 B. Cooper Boniece , José E. Figueroa-López , Yuchen Han

This work develops novel error expansions with computable leading order terms for the global weak error in the tau-leap discretization of pure jump processes arising in kinetic Monte Carlo models. Accurate computable a posteriori error…

Numerical Analysis · Mathematics 2011-10-21 Jesper Karlsson , Raul Tempone

In this paper we present the asymptotic analysis of the realised quadratic variation for multivariate symmetric $\beta$-stable L\'evy processes, $\beta \in (0,2)$, and certain pure jump semimartingales. The main focus is on derivation of…

Probability · Mathematics 2021-05-07 Johannes Heiny , Mark Podolskij

Sequential Monte Carlo samplers represent a compelling approach to posterior inference in Bayesian models, due to being parallelisable and providing an unbiased estimate of the posterior normalising constant. In this work, we significantly…

Methodology · Statistics 2022-11-24 Samuel Duffield , Sumeetpal S. Singh

We investigate the error of the randomized Milstein algorithm for solving scalar jump-diffusion stochastic differential equations. We provide a complete error analysis under substantially weaker assumptions than known in the literature. In…

Numerical Analysis · Mathematics 2023-12-06 Paweł Przybyłowicz , Verena Schwarz , Michaela Szölgyenyi

This paper studies multi-level stochastic approximation algorithms. Our aim is to extend the scope of the multilevel Monte Carlo method recently introduced by Giles (Giles 2008) to the framework of stochastic optimization by means of…

Probability · Mathematics 2014-08-12 Noufel Frikha

In this article we consider recursive approximations of the smoothing distribution associated to partially observed stochastic differential equations (SDEs), which are observed discretely in time. Such models appear in a wide variety of…

Methodology · Statistics 2018-05-15 Jeremie Houssineau , Ajay Jasra , Sumeetpal S. Singh

We study discrete-time simulation schemes for stochastic Volterra equations, namely the Euler and Milstein schemes, and the corresponding Multi-Level Monte-Carlo method. By using and adapting some results from Zhang [22], together with the…

Numerical Analysis · Mathematics 2022-03-08 Alexandre Richard , Xiaolu Tan , Fan Yang

We leverage multilevel Monte Carlo (MLMC) to improve the performance of multi-step look-ahead Bayesian optimization (BO) methods that involve nested expectations and maximizations. Often these expectations must be computed by Monte Carlo…

In this paper, we are interested in deriving non-asymptotic error bounds for the multilevel Monte Carlo method. As a first step, we deal with the explicit Euler discretization of stochastic differential equations with a constant diffusion…

Probability · Mathematics 2018-10-19 Benjamin Jourdain , Ahmed Kebaier

Stochastic PDE eigenvalue problems often arise in the field of uncertainty quantification, whereby one seeks to quantify the uncertainty in an eigenvalue, or its eigenfunction. In this paper we present an efficient multilevel quasi-Monte…

Numerical Analysis · Mathematics 2022-10-07 Alexander D. Gilbert , Robert Scheichl

We describe an Euler scheme to approximate solutions of L\'evy driven Stochastic Differential Equations (SDE) where the grid points are random and given by the arrival times of a Poisson process. This result extends a previous work of the…

Probability · Mathematics 2013-09-10 Albert Ferreiro-Castilla , Andreas E Kyprianou , Robert Scheichl

We consider a general class of high order weak approximation schemes for stochastic differential equations driven by L\'evy processes with infinite activity. These schemes combine a compound Poisson approximation for the jump part of the…

Probability · Mathematics 2012-04-24 Arturo Kohatsu-Higa , Salvador Ortiz-Latorre , Peter Tankov

In this paper we propose and advocate the use of the so called L\'evy flights as a driving mechanism for a class of stochastic optimization computations. This proposal, for some reasons overlooked until now, is - in author's opinion - very…

Mathematical Physics · Physics 2007-05-23 Marek Gutowski

As the size of engineered systems grows, problems in reliability theory can become computationally challenging, often due to the combinatorial growth in the cut sets. In this paper we demonstrate how Multilevel Monte Carlo (MLMC) - a…

Computation · Statistics 2017-03-14 Louis J. M. Aslett , Tigran Nagapetyan , Sebastian J. Vollmer

We develop a novel procedure for estimating the optimizer of general convex stochastic optimization problems of the form $\min_{x\in\mathcal{X}} \mathbb{E}[F(x,\xi)]$, when the given data is a finite independent sample selected according to…

Statistics Theory · Mathematics 2022-01-26 Daniel Bartl , Shahar Mendelson

We study the extremal behavior of a stochastic integral driven by a multivariate L\'{e}vy process that is regularly varying with index $\alpha>0$. For predictable integrands with a finite $(\alpha+\delta)$-moment, for some $\delta>0$, we…

Probability · Mathematics 2007-05-23 Henrik Hult , Filip Lindskog

We develop a completely new and straightforward method for simulating the joint law of the position and running maximum at a fixed time of a general L\'{e}vy process with a view to application in insurance and financial mathematics.…

Probability · Mathematics 2012-02-20 A. Kuznetsov , A. E. Kyprianou , J. C. Pardo , K. van Schaik

In the following article we consider approximate Bayesian computation (ABC) inference. We introduce a method for numerically approximating ABC posteriors using the multilevel Monte Carlo (MLMC). A sequential Monte Carlo version of the…

Methodology · Statistics 2017-02-14 Ajay Jasra , Seongil Jo , David Nott , Christine Shoemaker , Raul Tempone

This paper explores the rates of convergence of solutions for multivariate stochastic differential equations (SDEs) driven by L\'evy processes within the small-time stable domain of attraction (DoA). Explicit bounds are derived for the…

Probability · Mathematics 2025-09-17 Jorge González Cázares , David Kramer-Bang
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