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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

We present an error analysis of weak convergence of one-step numerical schemes for stochastic differential equations (SDEs) with super-linearly growing coefficients. Following Milstein's weak error analysis on the one-step approximation of…

Numerical Analysis · Mathematics 2023-03-29 Xiaojie Wang , Yuying Zhao , Zhongqiang Zhang

We present an error analysis of weak convergence of one-step numerical schemes for stochastic differential equations (SDEs) with super-linearly growing coefficients. Following Milstein's weak error analysis on the one-step approximation of…

Numerical Analysis · Mathematics 2023-03-29 Xiaojie Wang , Yuying Zhao , Zhongqiang Zhang

In this paper, we first establish well-posedness results for one-dimensional McKean-Vlasov stochastic differential equations (SDEs) and related particle systems with a measure-dependent drift coefficient that is discontinuous in the spatial…

Probability · Mathematics 2024-03-29 Gunther Leobacher , Christoph Reisinger , Wolfgang Stockinger

In this paper, we aim to study the diffusion approximation for multi-scale McKean-Vlasov stochastic differential equations. More precisely, we prove the weak convergence of slow process $X^\varepsilon$ in $C([0,T];\mathbb{R}^n)$ towards the…

Probability · Mathematics 2022-06-07 Wei Hong , Shihu Li , Xiaobin Sun

In recent years, an intensive study of strong approximation of stochastic differential equations (SDEs) with a drift coefficient that may have discontinuities in space has begun. In many of these results it is assumed that the drift…

Probability · Mathematics 2021-03-01 Larisa Yaroslavtseva

This paper is dedicated to investigating the adaptive Euler-Maruyama (EM) schemes for the approximation of McKean-Vlasov stochastic differential equations (SDEs) with common noise. When the drift and diffusion coefficients both satisfy the…

Numerical Analysis · Mathematics 2025-09-03 Hu Liu , Shuaibin Gao , Junhao Hu

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

We present an implicit Split-Step explicit Euler type Method (dubbed SSM) for the simulation of McKean-Vlasov Stochastic Differential Equations (MV-SDEs) with drifts of superlinear growth in space, Lipschitz in measure and non-constant…

Numerical Analysis · Mathematics 2022-05-10 Xingyuan Chen , Goncalo dos Reis

Since it is difficult to implement implicit schemes on the infinite-dimensional space, we aim to develop the explicit numerical method for approximating super-linear stochastic functional differential equations (SFDEs). Precisely, borrowing…

Numerical Analysis · Mathematics 2022-08-23 Xiaoyue Li , Xuerong Mao , Guoting Song

This article studies the temporal approximation of hyperbolic semilinear stochastic evolution equations with multiplicative Gaussian noise by Milstein-type schemes. We take the term hyperbolic to mean that the leading operator generates a…

Numerical Analysis · Mathematics 2026-02-03 Felix Kastner , Katharina Klioba

This article studies an infinite dimensional analog of Milstein's scheme for finite dimensional stochastic ordinary differential equations (SODEs). The Milstein scheme is known to be impressively efficient for SODEs which fulfill a certain…

Numerical Analysis · Mathematics 2021-11-02 Arnulf Jentzen , Michael Roeckner

We introduce a class of explicit balanced schemes for stochastic differential equations with coefficients of superlinearly growth satisfying a global monotone condition. The first scheme is a balanced Euler scheme and is of order half in…

Numerical Analysis · Mathematics 2017-05-23 Zhongqiang Zhang , Heping Ma

In this work, weakly corrected explicit, semi-implicit and implicit Milstein approximations are presented for the solution of nonlinear stochastic differential equations. The solution trajectories provided by the Milstein schemes are…

Numerical Analysis · Mathematics 2021-08-25 Tapas Tripura , Budhaditya Hazra , Souvik Chakraborty

Motivated by the results of \cite{sabanis2015}, we propose explicit Euler-type schemes for SDEs with random coefficients driven by L\'evy noise when the drift and diffusion coefficients can grow super-linearly. As an application of our…

Probability · Mathematics 2016-11-11 Chaman Kumar , Sotirios Sabanis

We consider a process given as the solution of a stochastic differential equation with irregular, path dependent and time-inhomogeneous drift coefficient and additive noise. Explicit and optimal bounds for the Lebesgue density of that…

Probability · Mathematics 2015-08-04 David Baños , Paul Krühner

The purpose of this paper is to study some properties of solutions to one dimensional as well as multidimensional stochastic differential equations (SDEs in short) with super-linear growth conditions on the coefficients. Taking inspiration…

Probability · Mathematics 2015-02-18 Khaled Bahlali , Antoine Hakassou , Youssef Ouknine

In this paper, we consider scalar stochastic differential equations (SDEs) with a superlinearly growing and piecewise continuous drift coefficient. Existence and uniqueness of strong solutions of such SDEs are obtained. Furthermore, the…

Probability · Mathematics 2022-06-02 Huimin Hu , Siqing Gan

In this paper, we investigate the problem of strong approximation of the solutions of stochastic differential equations (SDEs) when the drift coefficient is given in integral form. We investigate its upper error bounds, in terms of the…

Numerical Analysis · Mathematics 2025-11-20 Paweł Przybyłowicz , Michał Sobieraj

An explicit Milstein-type scheme for stochastic differential equation with Markovian switching is derived and its strong convergence in $\mathcal{L}^2$-sense is established without using It\^o-Taylor expansion formula. Rate of strong…

Probability · Mathematics 2019-09-18 Chaman Kumar , Tejinder Kumar