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We present a comprehensive discretization scheme for linear and nonlinear stochastic differential equations (SDEs) driven by either Brownian motions or $\alpha$-stable processes. Our approach utilizes compound Poisson particle…

Probability · Mathematics 2023-07-14 Xicheng Zhang

In this paper we study the strong convergence for the Euler-Maruyama approximation of a class of stochastic differential equations whose both drift and diffusion coefficients are possibly discontinuous.

Probability · Mathematics 2016-09-02 Hoang-Long Ngo , Dai Taguchi

This paper is devoted to order-one explicit approximations of random periodic solutions to multiplicative noise driven stochastic differential equations (SDEs) with non-globally Lipschitz coefficients. The existence of the random periodic…

Probability · Mathematics 2025-01-06 Yujia Guo , Xiaojie Wang , Yue Wu

We study strong approximation of $d$-dimensional stochastic differential equations (SDEs) with a discontinuous drift coefficient. More precisely, we essentially assume that the drift coefficient is piecewise Lipschitz continuous with an…

Numerical Analysis · Mathematics 2025-04-03 Thomas Müller-Gronbach , Christopher Rauhögger , Larisa Yaroslavtseva

We consider the problem of the approximation of the solution of a one-dimensional SDE with non-globally Lipschitz drift and diffusion coefficients behaving as $x^\alpha$, with $\alpha>1$. We propose an (semi-explicit) exponential-Euler…

Probability · Mathematics 2022-11-30 Mireille Bossy , Jean Francois Jabir , Kerlyns Martinez

We study stochastic differential equations(SDEs) with a small perturbation parameter. Under the dissipative condition on the drift coefficient and the local Lipschitz condition on the drift and diffusion coefficients we prove the existence…

Probability · Mathematics 2022-05-05 Luca Di Persio , Yuri Kondratiev , Viktorya Vardanyan

In this paper, we study well-posedness of McKean-Vlasov stochastic differential equations (SDE) whose drift depends pointwisely on marginal density and satisfies a local integrability condition in time-space variables. The drift and noise…

Probability · Mathematics 2025-11-20 Anh-Dung Le , Stéphane Villeneuve

Recently, it has been shown in [Jentzen, A., M\"uller-Gronbach, T., and Yaroslavtseva, L., Commun. Math. Sci., 14, 2016] that there exists a system of autonomous stochastic differential equations (SDE) on the time interval $[0,T]$ with…

Probability · Mathematics 2017-07-28 Thomas Müller-Gronbach , Larisa Yaroslavtseva

The aim of this paper is to obtain convergence in mean in the uniform topology of piecewise linear approximations of Stochastic Differential Equations (SDEs) with $C^1$ drift and $C^2$ diffusion coefficients with uniformly bounded…

Probability · Mathematics 2025-03-13 Sahani Pathiraja

Despite its generality and powerful convergence properties, Milstein's method for functionals of spatially bounded stochastic differential equations is widely regarded as difficult to implement. This has likely prevented it from being…

Numerical Analysis · Mathematics 2018-11-22 Francisco Bernal

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

We deal with pointwise approximation of solutions of scalar stochastic differential equations in the presence of informational noise about underlying drift and diffusion coefficients. We define a randomized derivative-free version of…

Numerical Analysis · Mathematics 2020-10-06 Paweł M. Morkisz , Paweł Przybyłowicz

The paper investigates existence and uniqueness for a stochastic differential equation (SDE) with distributional drift depending on the law density of the solution. Those equations are known as McKean SDEs. The McKean SDE is interpreted in…

Probability · Mathematics 2022-06-28 Elena Issoglio , Francesco Russo

This work aims at making a comprehensive contribution in the general area of parametric inference for discretely observed diffusion processes. Established approaches for likelihood-based estimation invoke a time-discretisation scheme for…

Methodology · Statistics 2024-01-30 Yuga Iguchi , Alexandros Beskos , Matthew M. Graham

This work aims to estimate the drift and diffusion functions in stochastic differential equations (SDEs) driven by a particular class of L\'evy processes with finite jump intensity, using neural networks. We propose a framework that…

Machine Learning · Statistics 2025-07-10 Jose-Hermenegildo Ramirez-Gonzalez , Ying Sun

We consider stochastic differential equations (SDEs) driven by a fractional Brownian motion with a drift coefficient that is allowed to be arbitrarily close to criticality in a scaling sense. We develop a comprehensive solution theory that…

Probability · Mathematics 2025-01-29 Lucio Galeati , Máté Gerencsér

In this work, we will show strong convergence of the Multilevel Monte-Carlo (MLMC) algorithm with split-step backward Euler (SSBE) and backward (drift-implicit) Euler (BE) schemes for nonlinear jump-diffusion stochastic differential…

Numerical Analysis · Mathematics 2018-10-30 Azadeh Ghasemifard , Mahdieh Tahmasebi

In this paper we present a scheme for the numerical solution of one-dimensional stochastic differential equations (SDEs) whose drift belongs to a fractional Sobolev space of negative regularity (a subspace of Schwartz distributions). We…

Probability · Mathematics 2022-09-21 Tiziano De Angelis , Maximilien Germain , Elena Issoglio

We consider a one-dimensional stochastic differential equations (SDE) with irregular coefficients. The purpose of this paper is to estimate the $L^p(\Omega)$-difference of SDEs using the norm of the difference of coefficients, where the…

Probability · Mathematics 2014-04-10 Dai Taguchi

The explicit Euler scheme and similar explicit approximation schemes (such as the Milstein scheme) are known to diverge strongly and numerically weakly in the case of one-dimensional stochastic ordinary differential equations with…

Numerical Analysis · Mathematics 2019-03-15 Matteo Beccari , Martin Hutzenthaler , Arnulf Jentzen , Ryan Kurniawan , Felix Lindner , Diyora Salimova
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