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Optimization in the Bures-Wasserstein space has been gaining popularity in the machine learning community since it draws connections between variational inference and Wasserstein gradient flows. The variational inference objective function…

Machine Learning · Computer Science 2025-03-03 Hoang Phuc Hau Luu , Hanlin Yu , Bernardo Williams , Marcelo Hartmann , Arto Klami

We deal with a general class of extreme-value regression models introduced by Barreto- Souza and Vasconcellos (2011). Our goal is to derive an adjusted likelihood ratio statistic that is approximately distributed as \c{hi}2 with a high…

Statistics Theory · Mathematics 2012-08-14 Silvia L. P. Ferrari , Eliane C. Pinheiro

An ordinary differential equation (ODE) model, whose regression curves are a set of solution curves for some ODEs, poses a challenge in parameter estimation. The challenge, due to the frequent absence of analytic solutions and the…

Computation · Statistics 2021-08-11 Hyunjoo Yang , Jaeyong Lee

The overarching goal of this paper is to establish a set-valued It\^{o}'s formula. As an application, we obtain the existence and uniqueness of solutions for the general set-valued backward stochastic differential equation which gives an…

Probability · Mathematics 2021-02-09 Yao-jia Zhang , Zhun Gou , Nan-jing Huang

We describe a regression-based method, generally referred to as the Least Squares Monte Carlo (LSMC) method, to speed up exposure calculations of a portfolio. We assume that the portfolio contains several exotic derivatives that are priced…

Computational Finance · Quantitative Finance 2021-05-18 Yuriy Krepkiy , Asif Lakhany , Amber Zhang

We consider the probabilistic numerical scheme for fully nonlinear PDEs suggested in \cite{cstv}, and show that it can be introduced naturally as a combination of Monte Carlo and finite differences scheme without appealing to the theory of…

Probability · Mathematics 2010-08-26 Arash Fahim , Nizar Touzi , Xavier Warin

Adaptive Monte Carlo methods are recent variance reduction techniques. In this work, we propose a mathematical setting which greatly relaxes the assumptions needed by for the adaptive importance sampling techniques presented by Vazquez-Abad…

Computational Finance · Quantitative Finance 2011-04-28 Bernard Lapeyre , Jérôme Lelong

It is well-known since the work of Pardoux and Peng [12] that Backward Stochastic Differential Equations provide probabilistic formulae for the solution of (systems of) second order elliptic and parabolic equations, thus providing an…

Probability · Mathematics 2020-03-10 Etienne Pardoux , Aurel Rascanu

We design a numerical scheme for solving a Dynamic Programming equation with Malliavin weights arising from the time-discretization of backward stochastic differential equations with the integration by parts-representation of the…

Statistics Theory · Mathematics 2016-01-07 Emmanuel Gobet , Plamen Turkedjiev

In this paper we develop a new approach to the design of direct numerical methods for multidimensional problems of the calculus of variations. The approach is based on a transformation of the problem with the use of a new class of…

Optimization and Control · Mathematics 2019-03-04 M. V. Dolgopolik

The problem of the construction of strong approximations with a given order of convergence for jump-diffusion equations is studied. General approximation schemes are constructed for L\'evy type stochastic differential equation. In…

Probability · Mathematics 2015-12-22 Michał Barski

This paper establishes a converse comparison theorem for real-valued decoupled forward backward stochastic differential equations with jumps.

Probability · Mathematics 2011-05-25 Xavier De Scheemaekere

The Multilevel Monte Carlo method is an efficient variance reduction technique. It uses a sequence of coarse approximations to reduce the computational cost in uncertainty quantification applications. The method is nowadays often considered…

Numerical Analysis · Mathematics 2018-06-15 Pieterjan Robbe , Dirk Nuyens , Stefan Vandewalle

The work concerns a type of backward multivalued McKean-Vlasov stochastic differential equations. First, we prove the existence and uniqueness of solutions for backward multivalued McKean-Vlasov stochastic differential equations. Then, it…

Probability · Mathematics 2022-12-09 Jun Gong , Huijie Qiao

The main challenges that arise when adopting Gaussian Process priors in probabilistic modeling are how to carry out exact Bayesian inference and how to account for uncertainty on model parameters when making model-based predictions on…

Machine Learning · Statistics 2014-04-08 Maurizio Filippone , Mark Girolami

In this work, we apply the Stochastic Grid Bundling Method (SGBM) to numerically solve backward stochastic differential equations (BSDEs). The SGBM algorithm is based on conditional expectations approximation by means of bundling of Monte…

Numerical Analysis · Mathematics 2019-08-26 Ki Wai Chau , Cornelis W. Oosterlee

Under quasi-monotone assumptions for coefficients, we show one kind of comparison theorem for multi-dimensional\textbf{\}backward doubly stochastic differential equations on infinite horizon. An example is given as well.

Probability · Mathematics 2010-05-25 Liangquan Zhang , Yufeng Shi

This article considers the sequential Monte Carlo (SMC) approximation of ratios of normalizing constants associated to posterior distributions which in principle rely on continuum models. Therefore, the Monte Carlo estimation error and the…

Computation · Statistics 2016-03-04 Pierre Del Moral , Ajay Jasra , Kody Law , Yan Zhou

Backward stochastic differential equations (BSDEs) belong nowadays to the most frequently studied equations in stochastic analysis and computational stochastics. BSDEs in applications are often nonlinear and high-dimensional. In nearly all…

Numerical Analysis · Mathematics 2021-08-25 Martin Hutzenthaler , Arnulf Jentzen , Thomas Kruse , Tuan Anh Nguyen

We investigate the stochastic modified equation which plays an important role in the stochastic backward error analysis for explaining the mathematical mechanism of a numerical method. The contribution of this paper is threefold. First, we…

Numerical Analysis · Mathematics 2019-07-08 Chuchu Chen , Jialin Hong , Chuying Huang