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We propose and analyze deterministic multilevel approximations for Bayesian inversion of operator equations with uncertain distributed parameters, subject to additive Gaussian measurement data. The algorithms use a multilevel (ML) approach…

Numerical Analysis · Mathematics 2016-11-28 Josef Dick , Robert N. Gantner , Quoc T. Le Gia , Christoph Schwab

This paper studies the multilevel Monte-Carlo estimator for the expectation of a maximum of conditional expectations. This problem arises naturally when considering many stress tests and appears in the calculation of the interest rate…

Computational Finance · Quantitative Finance 2021-04-14 Aurélien Alfonsi , Adel Cherchali , Jose Arturo Infante Acevedo

The simulation of the expectation of a stochastic quantity E[Y] by Monte Carlo methods is known to be computationally expensive especially if the stochastic quantity or its approximation Y_n is expensive to simulate, e.g., the solution of a…

Probability · Mathematics 2023-12-06 Annika Lang , Andreas Petersson

In this article, we present a review of the recent developments on the topic of Multilevel Monte Carlo (MLMC) algorithm, in the paradigm of applications in financial engineering. We specifically focus on the recent studies conducted in two…

Computational Finance · Quantitative Finance 2022-09-30 Devang Sinha , Siddhartha P. Chakrabarty

In this paper, we propose and analyze a novel combination of multilevel Richardson-Romberg (ML2R) and importance sampling algorithm, with the aim of reducing the overall computational time, while achieving desired root-mean-squared error…

Computational Finance · Quantitative Finance 2022-09-05 Devang Sinha , Siddhartha P. Chakrabarty

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

The Multilevel Monte Carlo (MLMC) approach usually works well when estimating the expected value of a quantity which is a Lipschitz function of intermediate quantities, but if it is a discontinuous function it can lead to a much slower…

Numerical Analysis · Mathematics 2023-09-06 Michael B Giles

We present novel Monte Carlo (MC) and multilevel Monte Carlo (MLMC) methods to determine the unbiased covariance of random variables using h-statistics. The advantage of this procedure lies in the unbiased construction of the estimator's…

Statistics Theory · Mathematics 2024-05-09 Sharana Kumar Shivanand

This paper addresses optimization problems constrained by partial differential equations with uncertain coefficients. In particular, the robust control problem and the average control problem are considered for a tracking type cost…

Optimization and Control · Mathematics 2017-11-08 Andreas Van Barel , Stefan Vandewalle

We consider the problem of estimating expectations with respect to a target distribution with an unknown normalizing constant, and where even the unnormalized target needs to be approximated at finite resolution. This setting is ubiquitous…

Numerical Analysis · Mathematics 2023-03-23 Kody J. H. Law , Neil Walton , Shangda Yang , Ajay Jasra

We develop new multilevel Monte Carlo (MLMC) methods to estimate the expectation of the smallest eigenvalue of a stochastic convection-diffusion operator with random coefficients. The MLMC method is based on a sequence of finite element…

Numerical Analysis · Mathematics 2024-02-13 Tiangang Cui , Hans De Sterck , Alexander D. Gilbert , Stanislav Polishchuk , Robert Scheichl

In this paper a novel modification of the multilevel Monte Carlo approach, allowing for further significant complexity reduction, is proposed. The idea of the modification is to use the method of control variates to reduce variance at level…

Computational Finance · Quantitative Finance 2017-03-14 Denis Belomestny , Tigran Nagapetyan

Uncertainty Quantification through Markov Chain Monte Carlo (MCMC) can be prohibitively expensive for target probability densities with expensive likelihood functions, for instance when the evaluation it involves solving a Partial…

Computation · Statistics 2020-12-11 Mikkel B. Lykkegaard , Grigorios Mingas , Robert Scheichl , Colin Fox , Tim J. Dodwell

Operator learning is a rapidly growing field that aims to approximate nonlinear operators related to partial differential equations (PDEs) using neural operators. These rely on discretization of input and output functions and are, usually,…

Machine Learning · Computer Science 2026-02-04 James Rowbottom , Stefania Fresca , Pietro Lio , Carola-Bibiane Schönlieb , Nicolas Boullé

Stochastic optimization in learning and inference often relies on Markov chain Monte Carlo (MCMC) to approximate gradients when exact computation is intractable. However, finite-time MCMC estimators are biased, and reducing this bias…

Statistics Theory · Mathematics 2026-02-02 Antoine Godichon-Baggioni , Gabriel Lang , Sylvain Le Corff , Julien Stoehr , Sobihan Surendran

We aim at analyzing in terms of a.s. convergence and weak rate the performances of the Multilevel Monte Carlo estimator (MLMC) introduced in [Gil08] and of its weighted version, the Multilevel Richardson Romberg estimator (ML2R), introduced…

Probability · Mathematics 2018-02-20 Daphné Giorgi , Vincent Lemaire , Gilles Pagès

In this paper, the truncated Euler-Maruyama (EM) method is employed together with the Multi-level Monte Carlo (MLMC) method to approximate the expectations of functions of solutions to stochastic differential equations (SDEs). The…

Numerical Analysis · Mathematics 2017-02-22 Qian Guo , Wei Liu , Xuerong Mao , Weijun Zhan

This article reviews the application of advanced Monte Carlo techniques in the context of Multilevel Monte Carlo (MLMC). MLMC is a strategy employed to compute expectations which can be biased in some sense, for instance, by using the…

Computation · Statistics 2017-04-25 Ajay Jasra , Kody Law , Carina Suciu

Recently, Stochastic Gradient Markov Chain Monte Carlo (SG-MCMC) methods have been proposed for scaling up Monte Carlo computations to large data problems. Whilst these approaches have proven useful in many applications, vanilla SG-MCMC…

Machine Learning · Statistics 2016-12-13 Umut Şimşekli , Roland Badeau , A. Taylan Cemgil , Gaël Richard

We propose a variance reduction framework for variational inference using the Multilevel Monte Carlo (MLMC) method. Our framework is built on reparameterized gradient estimators and "recycles" parameters obtained from past update history in…

Machine Learning · Statistics 2021-12-03 Masahiro Fujisawa , Issei Sato