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We study reflected solutions of one-dimensional backward doubly stochastic differential equations (BDSDEs in short). The "reflected" keeps the solution above a given stochastic process. We get the uniqueness and existence by penalization.…

Probability · Mathematics 2009-06-08 Weiqiang Yang , Yufeng Shi , Yangling Gu

We discuss a class of stochastic second-order PDEs in one space-dimension with an inner boundary moving according to a possibly non-linear, Stefan-type condition. We show that proper separation of phases is attained, i.e., the solution…

Probability · Mathematics 2018-01-17 Martin Keller-Ressel , Marvin S. Mueller

In this paper we study the homeomorphic properties of the solutions to one dimensional backward doubly stochastic differential equations under suitable assumptions, where the terminal values depend on a real parameter. Then, we apply them…

Probability · Mathematics 2009-07-14 Auguste Aman

We deal with a class of fully coupled forward-backward stochastic differential equations (FBSDE for short), driven by Teugels martingales associated with some L\'evy process. Under some assumptions on the derivatives of the coefficients, we…

Probability · Mathematics 2017-01-31 Dalila Guerdouh , Nabil Khelfallah , Brahim Mezerdi

Shape optimization models with one or more shapes are considered in this chapter. Of particular interest for applications are problems in which where a so-called shape functional is constrained by a partial differential equation (PDE)…

Optimization and Control · Mathematics 2021-07-19 Caroline Geiersbach , Estefania Loayza-Romero , Kathrin Welker

In this paper we present two numerical schemes of approximating solutions of backward doubly stochastic differential equations (BDSDEs for short). We give a method to discretize a BDSDE. And we also give the proof of the convergence of…

Probability · Mathematics 2008-06-05 Yufeng Shi , Weiqiang Yang , Jing Yuan

We consider an Ito stochastic differential equation with delay, driven by brownian motion, whose solution, by an appropriate reformulation, defines a Markov process $X$ with values in a space of continuous functions $\mathbf C$, with…

Probability · Mathematics 2013-04-10 Marco Fuhrman , Federica Masiero , Gianmario Tessitore

We present the systematic formalism to derive the path-integral formulation for the hard-core particle systems far from equilibrium. Writing the master equation for a stochastic process of the system in terms of the annihilation and…

Statistical Mechanics · Physics 2009-10-31 Su-Chan Park , Doochul Kim , Jeong-Man Park

Stochastic differential equations (SDE) are widely used in modeling stochastic dynamics in literature. However, SDE alone is not enough to determine a unique process. A specified interpretation for stochastic integration is needed.…

Mathematical Physics · Physics 2012-10-18 Jianghong Shi , Tianqi Chen , Ruoshi Yuan , Bo Yuan , Ping Ao

This paper develops a probabilistic numerical method for solution of partial differential equations (PDEs) and studies application of that method to PDE-constrained inverse problems. This approach enables the solution of challenging inverse…

Methodology · Statistics 2017-07-12 Jon Cockayne , Chris Oates , Tim Sullivan , Mark Girolami

Causal analyses of longitudinal data generally assume that the qualitative causal structure relating variables remains invariant over time. In structured systems that transition between qualitatively different states in discrete time steps,…

Methodology · Statistics 2020-11-11 Ranjani Srinivasan , Jaron Lee , Rohit Bhattacharya , Narges Ahmidi , Ilya Shpitser

Using Dupire's notion of vertical derivative, we provide a functional (path-dependent) extension of the It\^o's formula of Gozzi and Russo (2006) that applies to C^{0,1}-functions of continuous weak Dirichlet processes. It is motivated and…

Probability · Mathematics 2021-01-12 Bruno Bouchard , Grégoire Loeper , Xiaolu Tan

In this introductory paper, we discuss how quantitative finance problems under some common risk factor dynamics for some common instruments and approaches can be formulated as time-continuous or time-discrete forward-backward stochastic…

Computational Finance · Quantitative Finance 2019-11-29 Bernhard Hientzsch

We resolve an open problem concerning finite logical implication for path functional dependencies (PFDs).

Databases · Computer Science 2014-08-21 David Toman , Grant Weddell

In this paper we study the class of backward doubly stochastic differential equations (BDSDEs, for short) whose terminal value depends on the history of forward diffusion. We first establish a probabilistic representation for the spatial…

Probability · Mathematics 2008-11-12 Auguste Aman

We discuss a concept of path-dependent SDE with distributional drift with possible jumps. We interpret it via a suitable martingale problem, for which we provide existence and uniqueness. The corresponding solutions are expected to be…

Probability · Mathematics 2022-11-08 Elena Bandini , Francesco Russo

In this article, we deal with fractional stochastic differential equations, so-called Caputo type fractional backward stochastic differential equations (Caputo fBSDEs, for short), and study the well-posedness of an adapted solution to…

Probability · Mathematics 2022-10-05 Nazim I. Mahmudov , Arzu Ahmadova

In this paper we study different algorithms for backward stochastic differential equations (BSDE in short) basing on random walk framework for 1-dimensional Brownian motion. Implicit and explicit schemes for both BSDE and reflected BSDE are…

Probability · Mathematics 2009-09-23 Shige Peng , Mingyu Xu

In this paper, we establish the existence and uniqueness of fully coupled forward-backward stochastic differential equations (FBSDEs in short) driven by anomalous sub-diffusions $B_{L_t}$ under suitable monotonicity conditions on the…

Probability · Mathematics 2023-11-28 Shuaiqi Zhang , Zhen-Qing Chen

Moving boundary problems allow to model systems with phase transition at an inner boundary. Driven by problems in economics and finance, in particular modeling of limit order books, we consider a stochastic and non-linear extension of the…

Probability · Mathematics 2018-10-31 Marvin S. Mueller
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