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We prove strong convergence of order $1/4-\epsilon$ for arbitrarily small $\epsilon>0$ of the Euler-Maruyama method for multidimensional stochastic differential equations (SDEs) with discontinuous drift and degenerate diffusion coefficient.…

Numerical Analysis · Mathematics 2019-01-23 Gunther Leobacher , Michaela Szölgyenyi

This paper is concerned with numerical solutions of one-dimensional SDEs with the drift being a generalised function, in particular belonging to the H\"older-Zygmund space $C^{-\gamma}$ of negative order $-\gamma<0$ in the spatial variable.…

Probability · Mathematics 2026-03-06 Luis Mario Chaparro Jáquez , Elena Issoglio , Jan Palczewski

We are interested in strong approximations of one-dimensional SDEs which have non-Lipschitz coefficients and which take values in a domain. Under a set of general assumptions we derive an implicit scheme that preserves the domain of the…

Computational Finance · Quantitative Finance 2012-09-04 Andreas Neuenkirch , Lukasz Szpruch

In this paper we generalize an explicit numerical scheme for the CIR process that we have proposed before. The advantage of the new proposed scheme is that preserves positivity and is well posed for a (little bit) broader set of parameters…

Numerical Analysis · Mathematics 2015-02-20 Nikolaos Halidias

We consider the Euler-Maruyama approximation for multi-dimensional stochastic differential equations with irregular coefficients. We provide the rate of strong convergence where the possibly discontinuous drift coefficient satisfies a…

Probability · Mathematics 2014-04-11 Hoang-Long Ngo , Dai Taguchi

The strong rate of convergence of the Euler-Maruyama scheme for nondegenerate SDEs with irregular drift coefficients is considered. In the case of $\alpha$-H\"older drift in the recent literature the rate $\alpha/2$ was proved in many…

Probability · Mathematics 2021-03-09 Konstantinos Dareiotis , Máté Gerencsér

In this article we show that for SDEs with a drift coefficient that is non-locally integrable, one may define a tamed Euler scheme that converges in $L^p$ at rate $1/2$ to the true solution. The taming is required in this case since one…

Probability · Mathematics 2024-08-16 Tim Johnston , Sotirios Sabanis

In this paper, we investigate the optimal strong convergence rate of numerical approximations for the Cox--Ingersoll--Ross model driven by fractional Brownian motion with Hurst parameter $H\in(1/2,1)$. To deal with the difficulties caused…

Numerical Analysis · Mathematics 2020-04-17 Jialin Hong , Chuying Huang , Minoo Kamrani , Xu Wang

This paper is concerned with the numerical approximation of stochastic mechanical systems with nonlinear holonomic constraints. Such systems are described by second order stochastic differential-algebraic equations involving an implicitly…

Probability · Mathematics 2017-09-26 Felix Lindner , Holger Stroot

We derive sharp strong convergence rates for the Euler-Maruyama scheme approximating multidimensional SDEs with multiplicative noise without imposing any regularity condition on the drift coefficient. In case the noise is additive, we show…

Probability · Mathematics 2024-09-25 Konstantinos Dareiotis , Máté Gerencsér , Khoa Lê

SDE driven by an $\alpha $-stable process, $\alpha \in \lbrack 1,2),$ with Lipshitz continuous coefficient and $\beta $-H\"older drift is considered. The existence and uniqueness of a strong solution is proved when $\beta >1-\alpha /2$ by…

Probability · Mathematics 2016-08-09 R. Mikulevicius , Fanhui Xu

The Doss-Sussmann (DS) approach is used for uniform simulation of the Cox-Ingersoll-Ross (CIR) process. The DS formalism allows to express trajectories of the CIR process through solutions of some ordinary differential equation (ODE)…

Probability · Mathematics 2013-12-04 Grigori N. Milstein , John Schoenmakers

We study the Euler scheme for scalar non-autonomous stochastic differential equations, whose diffusion coefficient is not globally Lipschitz but a fractional power of a globally Lipschitz function. We analyse the strong error and establish…

Numerical Analysis · Mathematics 2024-01-17 Annalena Mickel , Andreas Neuenkirch

In this paper we study strong approximation of the solution of a scalar stochastic differential equation (SDE) at the final time in the case when the drift coefficient may have discontinuities in space. Recently it has been shown in…

Probability · Mathematics 2019-04-22 Thomas Müller-Gronbach , Larisa Yaroslavtseva

In this paper, we investigate the weak convergence rate of Euler-Maruyama's approximation for stochastic differential equations with irregular drifts. Explicit weak convergence rates are presented if drifts satisfy an integrability…

Probability · Mathematics 2020-05-12 Yongqiang Suo , Chenggui Yuan , Shao-Qin Zhang

We study the strong approximation of stochastic differential equations with discontinuous drift coefficients and (possibly) degenerate diffusion coefficients. To account for the discontinuity of the drift coefficient we construct an…

Numerical Analysis · Mathematics 2019-04-25 Andreas Neuenkirch , Michaela Szölgyenyi , Lukasz Szpruch

We analyze exponential integrability properties of the Cox-Ingersoll-Ross (CIR) process and its Euler discretizations with various types of truncation and reflection at 0. These properties play a key role in establishing the finiteness of…

Computational Finance · Quantitative Finance 2016-01-06 Andrei Cozma , Christoph Reisinger

The strong convergence of Euler approximations of stochastic delay differential equations is proved under general conditions. The assumptions on drift and diffusion coefficients have been relaxed to include polynomial growth and only…

Probability · Mathematics 2013-03-07 Chaman Kumar , Sotirios Sabanis

The convergence of the first order Euler scheme and an approximative variant thereof, along with convergence rates, are established for rough differential equations driven by c\`adl\`ag paths satisfying a suitable criterion, namely the…

Probability · Mathematics 2025-09-16 Andrew L. Allan , Anna P. Kwossek , Chong Liu , David J. Prömel

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