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We examine existence and uniqueness of strong solutions of multi-dimensional mean-field stochastic differential equations with irregular drift coefficients. Furthermore, we establish Malliavin differentiability of the solution and show…

Probability · Mathematics 2019-12-13 Martin Bauer , Thilo Meyer-Brandis

We study counterfactual stochastic optimization of conditional loss functionals under misspecified and noisy gradient information. The difficulty is that when the conditioning event has vanishing or zero probability, naive Monte Carlo…

Optimization and Control · Mathematics 2025-10-02 Vikram Krishnamurthy , Luke Snow

We develop a general method for derivative pricing. This approach has its roots in Shannon's Information Theory. The notion of $\lambda$-analyticity of L\'{e}vy models is introduced on the basis of which new representations of the pricing…

Applications · Statistics 2013-06-18 Alexander Kushpel , Jeremy Levesley

We compute Greeks for stochastic volatility models driven by Brownian informations. We use the Malliavin method introduced for deterministic volatility models.

Probability · Mathematics 2009-04-22 Youssef El-Khatib

We consider an infinite-dimensional dynamical system with polynomial nonlinearity and additive noise given by a finite number of Wiener processes. By studying how randomness is spread by the system we develop a counterpart of Hormander's…

Probability · Mathematics 2007-05-23 Yuri Bakhtin , Jonathan C. Mattingly

We study the adapted solution, numerical methods, and related convergence analysis for a unified backward stochastic partial differential equation (B-SPDE). The equation is vector-valued, whose drift and diffusion coefficients may involve…

Probability · Mathematics 2024-02-21 Wanyang Dai

For sampling from a log-concave density, we study implicit integrators resulting from $\theta$-method discretization of the overdamped Langevin diffusion stochastic differential equation. Theoretical and algorithmic properties of the…

Machine Learning · Statistics 2021-07-13 Liam Hodgkinson , Robert Salomone , Fred Roosta

We consider a one-dimensional Stochastic Differential Equation with reflection where we allow the drift to be merely bounded and measurable. It is already known that such equations have a unique strong solution. Recently, it has been shown…

Probability · Mathematics 2014-10-03 Torstein Nilssen , Tusheng Zhang

It was shown recently that a Langevin process can be reflected at an energy absorbing boundary. Here, we establish that the law of this reflecting process can be characterized as the unique weak solution to a certain second order stochastic…

Probability · Mathematics 2007-05-23 Jean Bertoin

This paper concerns the numerical approximation for the invariant distribution of Markovian switching L\'evy-driven stochastic differential equations. By combining the tamed-adaptive Euler-Maruyama scheme with the Multi-level Monte Carlo…

Probability · Mathematics 2024-11-07 Hoang-Viet Nguyen , Trung-Thuy Kieu , Duc-Trong Luong , Hoang-Long Ngo , Tran Ngoc Khue

Langevin equation with a multiplicative stochastic force is considered. That force is uncorrelated, it has the L\'evy distribution and the power-law intensity. The Fokker-Planck equations, which correspond both to the It\^o and Stratonovich…

Statistical Mechanics · Physics 2015-05-13 Tomasz Srokowski

In this paper we consider a class of stochastic differential equations driven by subordinate Brownian motion with Markovian switching. We use Malliavin calculus to study the smoothness of the density for the solution under uniform…

Probability · Mathematics 2017-11-27 Xiaobin Sun , Yingchao Xie

In this paper, we establish an Alekseev--Gr\"obner formula for stochastic differential equations (SDEs) driven by a Poisson random measure, which express the global error between a functional of two processes solution of SDEs started at the…

Probability · Mathematics 2025-10-08 Paul Maurer , Jérémy Zurcher

In this paper, based on the white noise analysis of square integrable pure-jump Levy process given by [1], we define the formal derivative of fractional Levy process defined by the square integrable pure-jump Levy process as the fractional…

Probability · Mathematics 2013-07-17 Xuebin Lu , Wanyang Dai

We consider the class of non-linear stochastic partial differential equations studied in \cite{conusdalang}. Equivalent formulations using integration with respect to a cylindrical Brownian motion and also the Skorohod integral are…

Probability · Mathematics 2015-03-25 Marta Sanz-Solé , André Süß

In this paper, we deal with a class of reflected backward stochastic differential equations associated to the subdifferential operator of a lower semi-continuous convex function driven by Teugels martingales associated with L\'{e}vy…

Probability · Mathematics 2015-05-13 Yong Ren , Xiliang Fan

The area enclosed by the two-dimensional Brownian motion in the plane was studied by L\'evy, who found the characteristic function and probability density of this random variable. For other planar processes, in particular ergodic diffusions…

Statistical Mechanics · Physics 2023-10-24 Johan du Buisson , Thamu D. P. Mnyulwa , Hugo Touchette

By using Malliavin calculus, explicit derivative formulae are established for a class of semi-linear functional stochastic partial differential equations with additive or multiplicative noise. As applications, gradient estimates and Harnack…

Probability · Mathematics 2011-10-25 Jianhai Bao , Feng-Yu Wang , Chenggui Yuan

Distributional properties -including Laplace transforms- of integrals of Markov processes received a lot of attention in the literature. In this paper, we complete existing results in several ways. First, we provide the analytical solution…

Probability · Mathematics 2016-05-09 Frédéric Vrins

Levy processes are widely used in financial mathematics, telecommunication, economics, queueing theory and natural sciences for modelling. A typical model is obtained by considering finite dimensional linear stochastic SISO systems driven…

Statistics Theory · Mathematics 2014-01-07 Laszlo Gerencser , Mate Manfay