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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 this paper, we consider a class of stochastic differential equations driven by symmetric non-degenerate $\alpha$-stable processes (including cylindrical ones) with $\alpha \in (1,2)$. We first establish a quantitative estimate for the…

Probability · Mathematics 2026-04-10 Zimo Hao , Mingyan 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

In this paper we investigate the convergence rate of Euler-Maruyama scheme for a class of stochastic differential delay equations, where the corresponding coefficients may be highly nonlinear with respect to the delay variables. In…

Probability · Mathematics 2011-11-18 Jianhai Bao , Chenggui Yuan

This paper proposes an adaptive numerical method for stochastic delay differential equations (SDDEs) with a non-global Lipschitz drift term and a non-constant delay, building upon the work of Wei Fang and others. The method adapts the step…

Numerical Analysis · Mathematics 2024-07-02 Dongyang Liu , Minghui Song , Yuhang Zhang

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 paper we study solutions to stochastic differential equations (SDEs) with discontinuous drift. We apply two approaches: The Euler-Maruyama method and the Fokker-Planck equation and show that a candidate density function based on the…

Systems and Control · Computer Science 2013-08-27 Maria Simonsen , John Leth , Henrik Schioler , Horia Cornean

We consider a generic and explicit tamed Euler--Maruyama scheme for multidimensional time-inhomogeneous stochastic differential equations with multiplicative Brownian noise. The diffusive coefficient is uniformly elliptic, H\"older…

Probability · Mathematics 2025-02-03 Khoa Lê , Chengcheng Ling

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 study the strong $L^p$-convergence rates of the Euler-Maruyama method for stochastic differential equations driven by Brownian motion with low-regularity drift coefficients. Specifically, the drift is assumed to be in the…

Probability · Mathematics 2025-08-15 Jinlong Wei , Junhao Hu , Guangying Lv , Chenggui Yuan

This paper focuses on the numerical scheme for multiple-delay stochastic differential equations with partially H\"older continuous drifts and locally H\"older continuous diffusion coefficients. To handle with the superlinear terms in…

Numerical Analysis · Mathematics 2024-03-19 Zhuoqi Liu , Zhaohang Wang , Siying Sun , Shuaibin Gao

This paper is concerned with the numerical approximation of stochastic ordinary differential equations, which satisfy a global monotonicity condition. This condition includes several equations with super-linearly growing drift and diffusion…

Numerical Analysis · Mathematics 2015-10-09 Wolf-Jürgen Beyn , Elena Isaak , Raphael Kruse

Most existing literature focuses on pointwise convergence (i.e., convergence at a fixed time point) of numerical solutions for Stochastic functional differential equations (SFDEs). In contrast, this paper investigates the strong segment…

Numerical Analysis · Mathematics 2026-04-24 Shounian Deng , Weiyin Fei , Banban Shi

In this paper, we consider a numerical approximation of the stochastic differential equation (SDE) $$X_{t}=x_{0}+ \int_{0}^{t} b(s, X_{s}) \mathrm{d}s + L_{t},~x_{0} \in \mathbb{R}^{d},~t \in [0,T],$$ where the drift coefficient $b:[0,T]…

Probability · Mathematics 2016-05-24 Olivier Menoukeu Pamen , Dai Taguchi

Euler-Maruyama method is studied to approximate stochastic differential equations driven by the symmetric $\alpha$-stable additive noise with the $\beta$ H\"older continuous drift coefficient. When $\alpha \in (1,2)$ and $\beta \in…

Numerical Analysis · Mathematics 2024-12-20 Wei Liu

In this paper, we extend the logarithmic Euler-Maruyama scheme for stochastic delay differential equation in one dimension to the part where we propose a scheme for a system of stochastic delay differential equations. We then show that the…

Numerical Analysis · Mathematics 2021-09-01 Nishant Agrawal , Yaozhong Hu

We study the convergence of a generic tamed Euler-Maruyama (EM) scheme for the kinetic type stochastic differential equations (SDEs) (also known as second order SDEs) with singular coefficients in both weak and strong probabilistic senses.…

Probability · Mathematics 2024-09-10 Zimo Hao , Khoa Lê , Chengcheng Ling

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

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

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