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We consider the approximation of stochastic differential equations (SDEs) with non-Lipschitz drift or diffusion coefficients. We present a modified explicit Euler-Maruyama discretisation scheme that allows us to prove strong convergence,…

Computational Finance · Quantitative Finance 2016-04-12 Jean-Francois Chassagneux , Antoine Jacquier , Ivo Mihaylov

In the recent breakthrough work \cite{xu2023lack}, a rigorous numerical analysis was conducted on the numerical solution of a scalar ODE containing a cubic polynomial derived from the Allen-Cahn equation. It was found that only the implicit…

Numerical Analysis · Mathematics 2024-11-12 Pansheng Li , Dongling Wang

This paper investigates longtime behaviors of the $\theta$-Euler-Maruyama method for the stochastic functional differential equation with superlinearly growing coefficients. We focus on the longtime convergence analysis in mean-square sense…

Numerical Analysis · Mathematics 2024-04-16 Chuchu Chen , Tonghe Dang , Jialin Hong , Guoting Song

In this paper, we study the Euler--Maruyama scheme for a particle method to approximate the McKean--Vlasov dynamics of calibrated local-stochastic volatility (LSV) models. Given the open question of well-posedness of the original problem,…

Computational Finance · Quantitative Finance 2023-09-04 Christoph Reisinger , Maria Olympia Tsianni

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

Many stochastic differential equations (SDEs) in the literature have a superlinearly growing nonlinearity in their drift or diffusion coefficient. Unfortunately, moments of the computationally efficient Euler-Maruyama approximation method…

Probability · Mathematics 2020-11-25 Martin Hutzenthaler , Arnulf Jentzen

Existing fundamental theorems for mean-square convergence of numerical methods for stochastic differential equations (SDEs) require globally or one-sided Lipschitz continuous coefficients, while strong convergence results under merely local…

Probability · Mathematics 2026-02-16 Pierre Étoré , Anna Melnykova , Irene Tubikanec

We propose two Euler-Maruyama (EM) type numerical schemes in order to approximate the invariant measure of a stochastic differential equation (SDE) driven by an $\alpha$-stable L\'evy process ($1<\alpha<2$): an approximation scheme with the…

Probability · Mathematics 2023-06-21 Peng Chen , Changsong Deng , Rene Schilling , Lihu Xu

We study the traditional backward Euler method for $m$-dimensional stochastic differential equations driven by fractional Brownian motion with Hurst parameter $H > 1/2$ whose drift coefficient satisfies the one-sided Lipschitz condition.…

Numerical Analysis · Mathematics 2022-05-30 Hao Zhou , Yaozhong Hu , Yanghui Liu

We establish a general framework to study the rate of convergence of a Euler type approximation scheme with decreasing time steps to the invariant measure, for a general class of stochastic systems. The error is measured in general…

Probability · Mathematics 2026-03-03 Aurélien Alfonsi , Vlad Bally , Arturo Kohatsu-Higa

We introduce free probability analogues of the stochastic theta methods for free stochastic differential equations in this work. Assume that the drift coefficient of the free stochastic differential equations is operator Lipschitz and the…

Numerical Analysis · Mathematics 2025-04-16 Yuanling Niu , Jiaxin Wei , Zhi Yin , Dan Zeng

We construct a nonstandard finite difference numerical scheme to approximate stochastic differential equations (SDEs) using the idea of weighed step introduced by R.E. Mickens. We prove the strong convergence of our scheme under locally…

Numerical Analysis · Mathematics 2015-07-23 Frédéric Pierret

For a stochastic differential equation driven by a fractional Brownian motion with Hurst parameter $H> \frac12$ it is known that the classical Euler scheme has the rate of convergence $2H-1$. In this paper we introduce a new numerical…

Probability · Mathematics 2017-03-07 Yaozhong Hu , Yanghui Liu , David Nualart

We survey recent developments in the field of complexity of pathwise approximation in $p$-th mean of the solution of a stochastic differential equation at the final time based on finitely many evaluations of the driving Brownian motion.…

Probability · Mathematics 2024-03-04 T. Müller-Gronbach , L. Yaroslavtseva

In this work, we adapt the {\em micro-macro} methodology to stochastic differential equations for the purpose of numerically solving oscillatory evolution equations. The models we consider are addressed in a wide spectrum of regimes where…

Numerical Analysis · Mathematics 2023-06-09 Ibrahim Almuslimani , Philippe Chartier , Mohammed Lemou , Florian Méhats

The strong convergence of the semi-implicit Euler-Maruyama (EM) method for stochastic differential equations with non-linear coefficients driven by a class of L\'evy processes is investigated. The dependence of the convergence order of the…

Numerical Analysis · Mathematics 2023-11-21 Xiaotong Li , Wei Liu , Hongjiong Tian

In this paper, we provide the strong rate of convergence for the Euler--Maruyama scheme for multi-dimensional stochastic differential equations with uniformly locally (unbounded) H\"older continuous drift and multiplicative noise. Our…

Probability · Mathematics 2026-01-09 Tsukasa Moritoki , Dai Taguchi

It is known in \cite{beccari} that the standard explicit Euler-type scheme (such as the exponential Euler and the linear-implicit Euler schemes) with a uniform timestep, though computationally efficient, may diverge for the stochastic…

Numerical Analysis · Mathematics 2023-11-14 Chuchu Chen , Tonghe Dang , Jialin Hong

An explicit numerical method is developed for a class of non-autonomous time-changed stochastic differential equations, whose coefficients obey H\"older's continuity in terms of the time variables and are allowed to grow super-linearly in…

Numerical Analysis · Mathematics 2022-05-03 Xiaotong Li , Wei Liu , Tianjiao Tang

In this paper we study the existence and uniqueness of the random periodic solution for a stochastic differential equation with a one-sided Lipschitz condition (also known as monotonicity condition) and the convergence of its numerical…

Probability · Mathematics 2021-08-19 Yue Wu