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Stochastic differential equations (SDEs) provide a natural framework for modelling intrinsic stochasticity inherent in many continuous-time physical processes. When such processes are observed in multiple individuals or experimental units,…

Computation · Statistics 2016-05-19 Gavin A. Whitaker , Andrew Golightly , Richard J. Boys , Chris Sherlock

We provide sufficient conditions for the continuity of the free-boundary in a general class of finite-horizon optimal stopping problems arising for instance in finance and economics. The underlying process is a strong solution of one…

Optimization and Control · Mathematics 2013-05-07 Tiziano De Angelis

We consider the problem of optimally stopping a general one-dimensional stochastic differential equation (SDE) with generalised drift over an infinite time horizon. First, we derive a complete characterisation of the solution to this…

Probability · Mathematics 2019-09-26 Mihail Zervos , Neofytos Rodosthenous , Pui Chan Lon , Thomas Bernhardt

In this paper, we consider the density estimation problem associated with the stationary measure of ergodic It\^o diffusions from a discrete-time series that approximate the solutions of the stochastic differential equations. To take an…

Numerical Analysis · Mathematics 2021-09-10 Yiqi Gu , John Harlim , Senwei Liang , Haizhao Yang

This paper develops and analyzes a fully discrete finite element method for a class of semilinear stochastic partial differential equations (SPDEs) with multiplicative noise. The nonlinearity in the diffusion term of the SPDEs is assumed to…

Numerical Analysis · Mathematics 2018-11-22 Xiaobing Feng , Yukun Li , Yi Zhang

In this paper we study the Stratonovich stochastic differential equation $\mathrm{d} X=|X|^{\alpha}\circ\mathrm{d} B$, $\alpha\in(-1,1)$, which has been introduced by Cherstvy et al. [New Journal of Physics 15:083039 (2013)] in the context…

Probability · Mathematics 2019-10-01 Ilya Pavlyukevich , Georgiy Shevchenko

In this paper, we study ergodic backward stochastic differential equations (EBSDEs for short), for which the underlying diffusion is assumed to be multiplicative and of at most linear growth. The fact that the forward process has an…

Probability · Mathematics 2018-01-08 Ying Hu , Florian Lemonnier

This paper deals with the process $X = (X_t)_{t\in [0,T]}$ defined by the stochastic differential equation (SDE) $dX_t = (a(X_t) + b(Y_t))dt +\sigma(X_t)dW_1(t)$, where $W_1$ is a Brownian motion and $Y$ is an exogenous process. The first…

Statistics Theory · Mathematics 2025-07-09 Fabienne Comte , Nicolas Marie

We characterize the optimal control for a class of singular stochastic control problems as the unique solution to a related Skorokhod reflection problem. The considered optimization problems concern the minimization of a discounted cost…

Optimization and Control · Mathematics 2023-05-22 Jodi Dianetti , Giorgio Ferrari

In this paper, we study averaging principles for a class of time-inhomogeneous stochastic differential equations (SDEs) with slow and fast time-scales, where the drift term in the fast component is time-dependent and only partially…

Probability · Mathematics 2025-06-24 Xiaobin Sun , Jian Wang , Yingchao Xie

We introduce an efficient numerical scheme for continuous time Dynkin games under model uncertainty. We use the Skorokhod embedding in order to construct recombining tree approximations. This technique allows us to determine convergence…

Probability · Mathematics 2018-02-20 Benjamin Gottesman , Yan Dolinsky

The object of this paper is a one-dimensional generalized porous media equation (PDE) with possibly discontinuous coefficient $\beta$, which is well-posed as an evolution problem in $L^1(\mathbb{R})$. In some recent papers of Blanchard et…

Probability · Mathematics 2010-11-17 Nadia Belaribi , François Cuvelier , Francesco Russo

A highly accurate method for simulating surfactant-covered droplets in two-dimensional Stokes flow with solid boundaries is presented. The method handles both periodic channel flows of arbitrary shape and stationary solid constrictions. A…

Numerical Analysis · Mathematics 2020-12-02 Sara Pålsson , Anna-Karin Tornberg

We study in this paper the wellposedness of path-dependent multidimensional forward-backward stochastic differential equations (FBSDE). By path-dependent we mean that the coefficients of the forward-backward SDE at time t can depend on the…

Probability · Mathematics 2022-01-13 Kaitong Hu

In this paper, we investigate the multi-marginal Schrodinger bridge (MSB) problem whose marginal constraints are marginal distributions of a stochastic differential equation (SDE) with a constant diffusion coefficient, and with time…

Probability · Mathematics 2025-07-15 Rentian Yao , Young--Heon Kim , Geoffrey Schiebinger

In this paper, we design a controller for an interconnected system consisting of a linear Stochastic Differential Equation (SDE) actuated through a linear hyperbolic Partial Differential Equation (PDE). Our approach aims to minimize the…

Optimization and Control · Mathematics 2024-05-15 Gabriel Velho , Jean Auriol , Riccardo Bonalli , Islam Boussaada

We develope a perturbation theory for stochastic differential equations (SDEs) by which we mean both stochastic ordinary differential equations (SODEs) and stochastic partial differential equations (SPDEs). In particular, we estimate the $…

Probability · Mathematics 2020-11-25 Martin Hutzenthaler , Arnulf Jentzen

We construct an aggregated version of the value processes associated with stochastic control problems, where the criterion to optimise is given by solutions to semi-martingale backward stochastic differential equations (BSDEs). The results…

Probability · Mathematics 2025-07-03 Dylan Possamaï , Marco Rodrigues , Alexandros Saplaouras

We solve a class of doubly reflected backward stochastic differential equation whose generator depends on the resistance due to reflections, which extend the recent work of Qian and Xu on reflected BSDE with one barrier. We then obtain the…

Probability · Mathematics 2011-10-28 Soufiane Aazizi

The solution of a (stochastic) differential equation (SDE) can be locally approximated by a stochastic expansion, a linear combination of iterated integrals. Quantities of interest, like moments, can then be approximated with the expansion.…

Probability · Mathematics 2010-08-25 Christophe Ladroue
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