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In this paper we consider multidimensional stochastic differential equations (SDEs) with discontinuous drift and possibly degenerate diffusion coefficient. We prove an existence and uniqueness result for this class of SDEs and we present a…

Numerical Analysis · Mathematics 2018-12-12 Gunther Leobacher , Michaela Szölgyenyi

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

In this paper we introduce a transformation technique, which can on the one hand be used to prove existence and uniqueness for a class of SDEs with discontinuous drift coefficient. One the other hand we present a numerical method based on…

Probability · Mathematics 2016-08-03 Gunther Leobacher , Michaela Szölgyenyi

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

In this paper we study jump-diffusion stochastic differential equations (SDEs) with a discontinuous drift coefficient and a possibly degenerate diffusion coefficient. Such SDEs appear in applications such as optimal control problems in…

Numerical Analysis · Mathematics 2021-01-15 Paweł Przybyłowicz , Michaela Szölgyenyi

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

In this paper, we are concerned with convergence rate of Euler-Maruyama scheme for stochastic differential equations with rough coefficients. The key contributions lie in (i), by means of regularity of non-degenerate Kolmogrov equation, we…

Probability · Mathematics 2016-09-21 Jianhai Bao , Xing Huang , Chenggui Yuan

We study the strong convergence order of the Euler-Maruyama scheme for scalar stochastic differential equations with additive noise and irregular drift. We provide a general framework for the error analysis by reducing it to a weighted…

Probability · Mathematics 2020-11-03 Andreas Neuenkirch , Michaela Szölgyenyi

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

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 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

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

Consider the following stochastic differential equation (SDE) $$dX_t = b(t,X_{t-}) \, dt+ dL_t, \quad X_0 = x,$$ driven by a $d$-dimensional L\'evy process $(L_t)_{t \geq 0}$. We establish conditions on the L\'evy process and the drift…

Probability · Mathematics 2020-05-01 Franziska Kühn , René L. Schilling

Numerical methods for SDEs with irregular coefficients are intensively studied in the literature, with different types of irregularities usually being attacked separately. In this paper we combine two different types of irregularities:…

Numerical Analysis · Mathematics 2024-01-12 Kathrin Spendier , Michaela Szölgyenyi

We investigate the strong approximation of stochastic differential equations whose drift is square-integrable in time and Dini continuous in space, while the diffusion coefficient is non-constant and uniformly elliptic. Using a refined…

Probability · Mathematics 2026-02-16 Jinlong Wei , Junhao Hu , Guangying Lv , Chenggui Yuan

In this paper, we study weak well-posedness of a McKean-Vlasov stochastic differential equations (SDEs) whose drift is density-dependent and whose diffusion is constant. The existence part is due to H\"older stability estimates of the…

Numerical Analysis · Mathematics 2025-11-20 Anh-Dung Le

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

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

This work establishes the weak convergence of Euler-Maruyama's approximation for stochastic differential equations (SDEs) with singular drifts under the integrability condition in lieu of the widely used growth condition. This method is…

Probability · Mathematics 2018-08-23 Jinghai Shao

Recently a lot of effort has been invested to analyze the $L_p$-error of the Euler-Maruyama scheme in the case of stochastic differential equations (SDEs) with a drift coefficient that may have discontinuities in space. For scalar SDEs with…

Numerical Analysis · Mathematics 2018-09-25 Thomas Müller-Gronbach , Larisa Yaroslavtseva
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