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On the one hand, the explicit Euler scheme fails to converge strongly to the exact solution of a stochastic differential equation (SDE) with a superlinearly growing and globally one-sided Lipschitz continuous drift coefficient. On the other…

Numerical Analysis · Mathematics 2012-09-13 Martin Hutzenthaler , Arnulf Jentzen , Peter E. Kloeden

We present an adaptive multilevel Monte Carlo algorithm for solving the stochastic drift-diffusion-Poisson system with non-zero recombination rate. The a-posteriori error is estimated to enable goal-oriented adaptive mesh refinement for the…

Numerical Analysis · Mathematics 2020-07-15 Amirreza Khodadadian , Maryam Parvizi , Clemens Heitzinger

We introduce three related but distinct improvements to multilevel Monte Carlo (MLMC) methods for the solution of systems of stochastic differential equations (SDEs). Firstly, we show that when the payoff function is twice continuously…

Numerical Analysis · Mathematics 2013-09-10 L. F. Ricketson

In this article, we consider multilevel Monte Carlo for the numerical computation of expectations for stochastic differential equations driven by L\'{e}vy processes. The underlying numerical schemes are based on jump-adapted Euler schemes.…

Probability · Mathematics 2016-02-02 Steffen Dereich , Sangmeng Li

A new class of explicit Euler schemes, which approximate stochastic differential equations (SDEs) with superlinearly growing drift and diffusion coefficients, is proposed in this article. It is shown, under very mild conditions, that these…

Probability · Mathematics 2016-09-05 Sotirios Sabanis

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 article, we propose a Milstein finite difference scheme for a stochastic partial differential equation (SPDE) describing a large particle system. We show, by means of Fourier analysis, that the discretisation on an unbounded domain…

Numerical Analysis · Mathematics 2012-04-09 Michael B. Giles , Christoph Reisinger

We study pathwise approximation of strong solutions of scalar stochastic differential equations (SDEs) at a single time in the presence of discontinuities of the drift coefficient. Recently, it has been shown by M\"uller-Gronbach and…

Probability · Mathematics 2024-02-23 Simon Ellinger

We develop and analyze a general class of Euler-type numerical schemes for Levy-driven McKean-Vlasov stochastic differential equations (SDEs), where the drift, diffusion and jump coefficients grow super-linearly in the state variable. These…

Numerical Analysis · Mathematics 2025-09-12 Jingtao Zhu , Yuying Zhao , Siqing Gan

Stochastic differential equations (SDEs) are an important class of time-series models, used to describe stochastic systems evolving in continuous time. Simulating paths from these processes, particularly after conditioning on noisy…

Computation · Statistics 2026-02-03 Xinyi Pei , Minhyeok Kim , Vinayak Rao

In this paper, we consider scalar stochastic differential equations (SDEs) with a superlinearly growing and piecewise continuous drift coefficient. Existence and uniqueness of strong solutions of such SDEs are obtained. Furthermore, the…

Probability · Mathematics 2022-06-02 Huimin Hu , Siqing Gan

We consider the explicit numerical approximations of stochastic differential equations (SDEs) driven by Brownian process and Poisson jump. It is well known that under non-global Lipschitz condition, Euler Explicit method fails to converge…

Numerical Analysis · Mathematics 2018-02-21 Antoine Tambue , Jean Daniel Mukam

Stochastic differential equations (SDEs) or diffusions are continuous-valued continuous-time stochastic processes widely used in the applied and mathematical sciences. Simulating paths from these processes is usually an intractable problem,…

Computation · Statistics 2020-05-27 Qi Wang , Vinayak Rao , Yee Whye Teh

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

This manuscript is dedicated to the numerical approximation of super-linear slow-fast stochastic differential equations (SFSDEs). Borrowing the heterogeneous multiscale idea, we propose an explicit multiscale Euler-Maruyama scheme suitable…

Numerical Analysis · Mathematics 2025-03-18 Yuanping Cui , Xiaoyue Li , Xuerong Mao

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

For stochastic differential equations (SDEs) with Markovian switching, whose drift and diffusion coefficients are allowed to contain superlinear terms, the backward Euler-Maruyama (BEM) method is proposed to approximate the invariant…

Numerical Analysis · Mathematics 2025-12-10 Wei Liu , Jie Xu

Kinetic equations model the position-velocity distribution of particles subject to transport and collision effects. Under a diffusive scaling, these combined effects converge to a diffusion equation for the position density in the limit of…

Numerical Analysis · Mathematics 2023-07-26 Emil Løvbak , Giovanni Samaey

In this article we consider parametric Bayesian inference for stochastic differential equations (SDE) driven by a pure-jump stable Levy process, which is observed at high frequency. In most cases of practical interest, the likelihood…

Statistics Theory · Mathematics 2017-07-28 Ajay Jasra , Kengo Kamatani , Hiroki Masuda

We study statistical model checking of continuous-time stochastic hybrid systems. The challenge in applying statistical model checking to these systems is that one cannot simulate such systems exactly. We employ the multilevel Monte Carlo…

Systems and Control · Computer Science 2017-06-27 Sadegh Esmaeil Zadeh Soudjani , Rupak Majumdar , Tigran Nagapetyan