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In this paper we propose a new kind of high order numerical scheme for backward stochastic differential equations(BSDEs). Unlike the traditional $\theta$-scheme, we reduce truncation errors by taking $\theta$ carefully for every subinterval…

Numerical Analysis · Mathematics 2018-08-08 Chol-Kyu Pak , Mun-Chol Kim , Chang-Ho Rim

We deal with a new maximum principle-based stochastic control model for river management through operating a dam and reservoir system. The model is based on coupled forward-backward stochastic differential equations (FBSDEs) derived from…

Systems and Control · Electrical Eng. & Systems 2021-04-23 Hidekazu Yoshioka

In this paper, we investigate two families of fully coupled linear Forward-Backward Stochastic Differential Equations (FBSDE). Within these families, one could get the same well-posedness of FBSDEs with totally different structures. The…

Optimization and Control · Mathematics 2022-05-17 Ruyi Liu , Zhen Wu , Detao Zhang

We are concerned with the discretization of a solution of a Forward-Backward stochastic differential equation (FBSDE) with a jump process depending on the Brownian motion. In this paper, we study the cases of Lipschitz generators and the…

Probability · Mathematics 2015-03-10 Idris Kharroubi , Thomas Lim

In this paper we propose a generalized numerical scheme for backward stochastic differential equations(BSDEs). The scheme is based on approximation of derivatives via Lagrange interpolation. By changing the distribution of sample points…

Numerical Analysis · Mathematics 2018-08-09 Chol-Kyu Pak , Mun-Chol Kim , O Hun

Fractional differential equations (FDEs) are an extension of the theory of fractional calculus. However, due to the difficulty in finding analytical solutions, there have not been extensive applications of FDEs until recent decades. With…

Numerical Analysis · Mathematics 2020-07-20 Nirupama Bhattacharya , Gabriel A. Silva

This paper delves into the well-posedness and the numerical approximation of non-autonomous stochastic differential algebraic equations (SDAEs) with nonlinear local Lipschitz coefficients that satisfy the more general monotonicity condition…

Numerical Analysis · Mathematics 2025-06-19 Guy Tsafack , Antoine Tambue

Recently, the deep learning method has been used for solving forward-backward stochastic differential equations (FBSDEs) and parabolic partial differential equations (PDEs). It has good accuracy and performance for high-dimensional…

Numerical Analysis · Mathematics 2020-02-04 Shaolin Ji , Shige Peng , Ying Peng , Xichuan Zhang

We propose new machine learning schemes for solving high dimensional nonlinear partial differential equations (PDEs). Relying on the classical backward stochastic differential equation (BSDE) representation of PDEs, our algorithms estimate…

Probability · Mathematics 2020-06-08 Côme Huré , Huyên Pham , Xavier Warin

In this paper, we study the solvability of a class of multi-dimensional forward backward stochastic differential equations (FBSDEs) with oblique reflection and unbounded stopping time. Under some mild assumptions on the coefficients in such…

Probability · Mathematics 2012-07-03 Soufiane Aazizi , Imade Fakhouri

In this note, we present a new numerical method for solving backward stochastic differential equations. Our method can be viewed as an analogue of the classical finite element method solving deterministic partial differential equations.

Probability · Mathematics 2011-06-07 Penghui Wang , Xu Zhang

A coupled forward-backward stochastic differential system (FBSDS) is formulated in spaces of fields for the incompressible Navier-Stokes equation in the whole space. It is shown to have a unique local solution, and further if either the…

Mathematical Physics · Physics 2014-03-04 Freddy Delbaen , Jinniao Qiu , Shanjian Tang

We propose a novel framework for solving a class of Partial Integro-Differential Equations (PIDEs) and Forward-Backward Stochastic Differential Equations with Jumps (FBSDEJs) through a deep learning-based approach. This method, termed the…

Numerical Analysis · Mathematics 2024-12-17 Zaijun Ye , Wansheng Wang

Using purely probabilistic methods, we prove the existence and the uniqueness of solutions fora system of coupled forward-backward stochastic differential equations (FBSDEs) with measurable, possibly discontinuous coefficients. As a…

Probability · Mathematics 2021-10-12 Kihun Nam , Yunxi Xu

In this paper, we propose a deep learning based numerical scheme for strongly coupled FBSDEs, stemming from stochastic control. It is a modification of the deep BSDE method in which the initial value to the backward equation is not a free…

Optimization and Control · Mathematics 2023-02-10 Kristoffer Andersson , Adam Andersson , Cornelis W. Oosterlee

We introduce a general framework for approximating parabolic Stochastic Partial Differential Equations (SPDEs) based on fluctuation-dissipation balance. Using this approach we formulate Stochastic Discontinuous Galerkin Methods (SDGM). We…

Numerical Analysis · Mathematics 2023-02-28 Will Pazner , Nathaniel Trask , Paul J. Atzberger

In this paper we study different algorithms for backward stochastic differential equations (BSDE in short) basing on random walk framework for 1-dimensional Brownian motion. Implicit and explicit schemes for both BSDE and reflected BSDE are…

Probability · Mathematics 2009-09-23 Shige Peng , Mingyu Xu

This paper introduces time-continuous numerical schemes to simulate stochastic differential equations (SDEs) arising in mathematical finance, population dynamics, chemical kinetics, epidemiology, biophysics, and polymeric fluids. These…

Probability · Mathematics 2015-03-13 Nawaf Bou-Rabee , Eric Vanden-Eijnden

In this paper,we mainly focus on the numerical solution of high-dimensional stochastic optimal control problem driven by fully-coupled forward-backward stochastic differential equations (FBSDEs in short) through deep learning. We first…

Optimization and Control · Mathematics 2024-08-21 Shaolin Ji , Shige Peng , Ying Peng , Xichuan Zhang

A novel efficient and high accuracy numerical method for the time-fractional differential equations (TFDEs) is proposed in this work. We show the equivalence between TFDEs and the integer-order extended parametric differential equations…

Numerical Analysis · Mathematics 2025-05-13 Peng Ding , Zhiping Mao