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The convolution method for the numerical solution of forward-backward stochastic differential equations (FBSDEs), introduced in [21], uses a uniform space grid. In this paper we utilize a tree-like spatial discretization that approximates…

Computational Finance · Quantitative Finance 2022-05-23 Polynice Oyono Ngou , Cody Hyndman

This paper presents a novel approach to rigorously solving initial value problems for semilinear parabolic partial differential equations (PDEs) using fully spectral Fourier-Chebyshev expansions. By reformulating the PDE as a system of…

Analysis of PDEs · Mathematics 2025-03-03 Matthieu Cadiot , Jean-Philippe Lessard

In this work, we present a globalized stochastic semismooth Newton method for solving stochastic optimization problems involving smooth nonconvex and nonsmooth convex terms in the objective function. We assume that only noisy gradient and…

Optimization and Control · Mathematics 2018-03-12 Andre Milzarek , Xiantao Xiao , Shicong Cen , Zaiwen Wen , Michael Ulbrich

Stochastic diffusion equations are crucial for modeling a range of physical phenomena influenced by uncertainties. We introduce the generalized finite difference method for solving these equations. Then, we examine its consistency,…

Numerical Analysis · Mathematics 2024-11-22 Faezeh Nassajian Mojarrad

By using a simple observation that the density processes appearing in Ito's martingale representation theorem are invariant under the change of measures, we establish a non-linear version of the Cameron-Martin formula for solutions of a…

Probability · Mathematics 2010-11-16 G. Liang , A. Lionnet , Z. Qian

Techniques are developed for decoupling dissipative differential equations. The approach considered is based upon obtaining a sufficient gap in the time dependent linear portion of the equation that corresponds to the linear variational…

Numerical Analysis · Mathematics 2015-12-01 Yu-Min Chung , Andrew J. Steyer , Erik S. Van Vleck

We propose new numerical schemes for decoupled forward-backward stochastic differential equations (FBSDEs) with jumps, where the stochastic dynamics are driven by a $d$-dimensional Brownian motion and an independent compensated Poisson…

Numerical Analysis · Mathematics 2015-08-06 Weidong Zhao , Wei Zhang , Guannan Zhang

We consider a system of semilinear partial differential equations (PDEs) with a nonlinearity depending on both the solution and its gradient. The Neumann boundary condition depends on the solution in a nonlinear manner. The uniform…

Probability · Mathematics 2022-01-14 Khaled Bahlali , Brahim Boufoussi , Soufiane Mouchtabih

We present a new algorithms to discretize a decoupled forward backward stochastic differential equations driven by pure jump L\'evy process (FBSDEL in short). The method is built in two steps. Firstly, we approximate the FBSDEL by a forward…

Probability · Mathematics 2011-10-25 Soufiane Aazizi

This paper explores a class of fully coupled nonlinear forward-backward stochastic difference equations (FBS$\Delta$Es). Building on insights from linear quadratic optimal control problems, we introduce a more relaxed framework of…

Optimization and Control · Mathematics 2025-08-01 Zhipeng Niu , Qingxin Meng , Xun Li , Maoning Tang

This paper develops validated computational methods for studying infinite dimensional stable manifolds at equilibrium solutions of parabolic PDEs, synthesizing disparate errors resulting from numerical approximation. To construct our…

Dynamical Systems · Mathematics 2021-07-08 Jan Bouwe van den Berg , Jonathan Jaquette , J. D. Mireles James

We study a general class of fully coupled backward-forward stochastic differential equations of mean-field type (MF-BFSDE). We derive existence and uniqueness results for such a system under weak monotonicity assumptions and without the…

Probability · Mathematics 2020-03-03 Yinggu Chen , Boualem Djehiche , Said Hamadene

We solve tensor balancing, rescaling an Nth order nonnegative tensor by multiplying N tensors of order N - 1 so that every fiber sums to one. This generalizes a fundamental process of matrix balancing used to compare matrices in a wide…

Methodology · Statistics 2018-10-30 Mahito Sugiyama , Hiroyuki Nakahara , Koji Tsuda

Considered herein is a modified Newton method for the numerical solution of nonlinear equations where the Jacobian is approximated using a complex-step derivative approximation. We show that this method converges for sufficiently small…

Numerical Analysis · Mathematics 2024-10-03 Dimitrios Mitsotakis

We give sufficient conditions under which the convergence of finite difference approximations in the space variable of the solution to the Cauchy problem for linear stochastic PDEs of parabolic type can be accelerated to any given order of…

Probability · Mathematics 2010-06-09 Istvan Gyongy , Nicolai Krylov

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

This project investigates numerical methods for solving fully coupled forward-backward stochastic differential equations (FBSDEs) of McKean-Vlasov type. Having numerical solvers for such mean field FBSDEs is of interest because of the…

This paper proposes a Newton-type method to solve numerically the eigenproblem of several diagonalizable matrices, which pairwise commute. A classical result states that these matrices are simultaneously diagonalizable. From a suitable…

Numerical Analysis · Mathematics 2022-11-07 Rima Khouja , Bernard Mourrain , Jean-Claude Yakoubsohn

We present a new approach to parallelization of the first-order backward difference discretization (BDF1) of the time derivative in partial differential equations, such as the nonlinear heat and viscous Burgers equations. The time…

Numerical Analysis · Mathematics 2024-06-04 Nail K. Yamaleev , Subhash Paudel

We explore the existence of a continuous marginal law with respect to the Lebesgue measure for each component $(X,Y,Z)$ of the solution to coupled quadratic forward-backward stochastic differential equations (QFBSDEs) {for which the drift…

Probability · Mathematics 2024-04-23 Rhoss Likibi Pellat , Olivier Menoukeu Pamen
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