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We are interested in stochastic control problems coming from mathematical finance and, in particular, related to model uncertainty, where the uncertainty affects both volatility and intensity. This kind of stochastic control problems is…

Probability · Mathematics 2014-05-15 Sébastien Choukroun , Andrea Cosso

We present a hierarchical, control theory inspired method for variational inference (VI) for neural stochastic differential equations (SDEs). While VI for neural SDEs is a promising avenue for uncertainty-aware reasoning in time-series, it…

Machine Learning · Computer Science 2025-05-26 Rembert Daems , Manfred Opper , Guillaume Crevecoeur , Tolga Birdal

In this article, we introduce and analyze a deep learning based approximation algorithm for SPDEs. Our approach employs neural networks to approximate the solutions of SPDEs along given realizations of the driving noise process. If applied…

Numerical Analysis · Mathematics 2025-10-21 Christian Beck , Sebastian Becker , Patrick Cheridito , Arnulf Jentzen , Ariel Neufeld

We study backward stochastic differential equations (BSDEs) for time-changed L\'evy noises when the time-change is independent of the L\'evy process. We prove existence and uniqueness of the solution and we obtain an explicit formula for…

Probability · Mathematics 2013-12-19 Giulia Di Nunno , Steffen Sjursen

Semilinear parabolic partial differential equations (PDEs) are fundamental to modeling complex dynamical systems across scientific domains. The Deep Backward Stochastic Differential Equation (BSDE) method is a promising approach for…

Computational Engineering, Finance, and Science · Computer Science 2026-05-12 Xiaotao Zheng , Xingye Yue , Zhihong Xia , Xin Li

In this paper, we focus on a class of time-inconsistent stochastic control problems, where the objective function includes the mean and several higher-order central moments of the terminal value of state. To tackle the time-inconsistency,…

Mathematical Finance · Quantitative Finance 2025-05-08 Yike Wang , Jingzhen Liu , Alain Bensoussan , Ka-Fai Cedric Yiu , Jiaqin Wei

We consider the simulation of Bayesian statistical inverse problems governed by large-scale linear and nonlinear partial differential equations (PDEs). Markov chain Monte Carlo (MCMC) algorithms are standard techniques to solve such…

Numerical Analysis · Mathematics 2021-02-09 Harbir Antil , Howard C Elman , Akwum Onwunta , Deepanshu Verma

This work is devoted to the study of optimal control of stochastic functional differential equations (SFDEs) and its application to mathematical finance. By using the Dynkin formula and solution of the Dirichlet-Poisson problem, the…

Optimization and Control · Mathematics 2014-04-04 Edson A. Coayla-Teran , Anatoly Swishchuk

We consider a discrete-time formulation for a class of high-dimensional stochastic joint replenishment problems. First, we approximate the problem by a continuous-time impulse control problem. Exploiting connections among the impulse…

Optimization and Control · Mathematics 2026-05-29 Barış Ata , Wouter van Eekelen , Yuan Zhong

There is a rising interest in Spatio-temporal systems described by Partial Differential Equations (PDEs) among the control community. Not only are these systems challenging to control, but the sizing and placement of their actuation is an…

Optimization and Control · Mathematics 2020-02-05 Ethan N. Evans , Andrew P. Kendall , George I. Boutselis , Evangelos A. Theodorou

We propose a novel numerical approach for nonlocal diffusion equations [8] with integrable kernels, based on the relationship between the backward Kolmogorov equation and backward stochastic differential equations (BSDEs) driven by L\`{e}vy…

Numerical Analysis · Mathematics 2015-07-28 Guannan Zhang , Weidong Zhao , Clayton Webster , Max Gunzburger

This paper introduces a new type of second order stochastic backward Hamilton-Jacobi-Bellman (HJB) equations for optimal stochastic control problems with a currently observable but non-predicable parameter process, in addition to the…

Optimization and Control · Mathematics 2020-03-04 Nikolai Dokuchaev

Backward stochastic differential equation (BSDE)-based deep learning methods provide an alternative to Physics-Informed Neural Networks (PINNs) for solving high-dimensional partial differential equations (PDEs), offering potential…

Machine Learning · Computer Science 2026-01-15 Sungje Park , Stephen Tu

Forward-backward stochastic differential equations (FBSDEs) have attracted significant attention since they were introduced almost 30 years ago, due to their wide range of applications, from solving non-linear PDEs to pricing American-type…

Probability · Mathematics 2022-09-21 Elena Issoglio , Shuai Jing

In the near future, robots are expected to work with humans or operate alone and may replace human workers in various fields such as homes and factories. In a previous study, we proposed bilateral control-based imitation learning that…

Robotics · Computer Science 2022-02-14 Kazuki Hayashi , Ayumu Sasagawa , Sho Sakaino , Toshiaki Tsuji

In this introductory paper, we discuss how quantitative finance problems under some common risk factor dynamics for some common instruments and approaches can be formulated as time-continuous or time-discrete forward-backward stochastic…

Computational Finance · Quantitative Finance 2019-11-29 Bernhard Hientzsch

We extend the Deep Galerkin Method (DGM) introduced in Sirignano and Spiliopoulos (2018)} to solve a number of partial differential equations (PDEs) that arise in the context of optimal stochastic control and mean field games. First, we…

Computational Finance · Quantitative Finance 2022-04-20 Ali Al-Aradi , Adolfo Correia , Danilo de Frietas Naiff , Gabriel Jardim , Yuri Saporito

Deep learning is formulated as a discrete-time optimal control problem. This allows one to characterize necessary conditions for optimality and develop training algorithms that do not rely on gradients with respect to the trainable…

Machine Learning · Computer Science 2018-06-05 Qianxiao Li , Shuji Hao

This paper proposes a novel deep generative model, called BSDE-Gen, which combines the flexibility of backward stochastic differential equations (BSDEs) with the power of deep neural networks for generating high-dimensional complex target…

Machine Learning · Computer Science 2023-04-11 Xingcheng Xu

We propose a deep learning algorithm for solving high-dimensional parabolic integro-differential equations (PIDEs) and high-dimensional forward-backward stochastic differential equations with jumps (FBSDEJs), where the jump-diffusion…

Numerical Analysis · Mathematics 2023-01-31 Wansheng Wang , Jie Wang , Jinping Li , Feifei Gao , Yi Fu
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