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In this paper, we study analytical properties of the solutions to the generalised delay Ait-Sahalia-type interest rate model with Poisson-driven jump. Since this model does not have explicit solution, we employ several new truncated…

Risk Management · Quantitative Finance 2021-07-13 Emmanuel Coffie

In this paper, we describe an explicit extension formula in sensitivity analysis regarding the Malliavin weight for jump-diffusion mean-field stochastic differential equations whose local Lipschitz drift coefficients are influenced by the…

Probability · Mathematics 2025-02-04 Samaneh Sojudi , Mahdieh Tahmasebi

This work investigates numerical approximations of index 1 stochastic differential algebraic equations (SDAEs) with non-constant singular matrices under non-global Lipschitz conditions. Analyzing the strong convergence rates of numerical…

Numerical Analysis · Mathematics 2025-09-16 Lin Chen , Ziheng Chen , Jing Zhao

We are interested in the numerical approximation of non-linear stochastic differential equations (SDEs) with solution in a certain domain. Our goal is to construct explicit numerical schemes that preserve that structure. We generalize the…

Numerical Analysis · Mathematics 2017-06-28 Ioannis S. Stamatiou

Under non-global Lipschitz condition, Euler Explicit method fails to converge strongly to the exact solution, while Euler implicit method converges but requires much computational efforts. Tamed scheme was first introduced in [2] to…

Numerical Analysis · Mathematics 2015-10-22 Antoine Tambue , Jean Daniel Mukam

We study optimal stochastic control problems of general coupled systems of forward-backward stochastic differential equations with jumps. By means of the It\^o-Ventzell formula the system is transformed to a controlled backward stochastic…

Optimization and Control · Mathematics 2017-01-12 Bernt Øksendal , Agnès Sulem , Tusheng Zhang

This paper studies the numerical methods to approximate the solutions for a sort of McKean-Vlasov neutral stochastic differential delay equations (MV-NSDDEs) that the growth of the drift coefficients is super-linear. First, We obtain that…

Probability · Mathematics 2022-11-04 Yuanping Cui , Xiaoyue Li , Yi Liu , Chenggui Yuan

This paper focuses on stochastic partial differential equations (SPDEs) under two-time-scale formulation. Distinct from the work in the existing literature, the systems are driven by $\alpha$-stable processes with $\alpha \in(1,2)$. In…

Statistics Theory · Mathematics 2016-09-30 Jianhai Bao , George Yin , Chenggui Yuan

We propose a new tamed Milstein-type scheme for stochastic differential equation with Markovian switching when drift coefficient is assumed to grow super-linearly. The strong rate of convergence is shown to be equal to $1.0$ under mild…

Probability · Mathematics 2019-09-18 Chaman Kumar , Tejinder Kumar

We study in this article the strong rate of convergence of the Euler-Maruyama scheme and associated with the jump-type equation introduced in Li and Mytnik. We obtain the strong rate of convergence under similar assumptions for strong…

Probability · Mathematics 2018-10-29 Libo Li , Dai Taguchi

In this paper, we, for the first time, establish two comparison theorems for multi-dimensional backward stochastic differential equations with jumps. Our approach is novel and completely different from the existing results for…

Probability · Mathematics 2023-11-14 Ying Hu , Xiaomin Shi , Zuo Quan Xu

This paper is devoted to the study of reflected Stochastic Differential Equations with jumps when the constraint is not on the paths of the solution but acts on the law of the solution. This type of reflected equations have been introduced…

Probability · Mathematics 2020-08-26 Philippe Briand , Abir Ghannoum , Céline Labart

In this paper we consider a mean-field backward stochastic differential equation (BSDE) driven by a Brownian motion and an independent Poisson random measure. Translating the splitting method introduced by Buckdahn, Li, Peng and Rainer [6]…

Probability · Mathematics 2017-02-20 Juan Li

Here we present a multiscale method to calculate the saddle point associated with the effective dynamics arising from a stochastic system which couples slow deterministic drift and fast stochastic dynamics. This problem is motivated by the…

Numerical Analysis · Mathematics 2017-08-25 Shuting Gu , Xiang Zhou

We formulate a new class of stochastic partial differential equations (SPDEs), named high-order vector backward SPDEs (B-SPDEs) with jumps, which allow the high-order integral-partial differential operators into both drift and diffusion…

Probability · Mathematics 2011-05-05 Wanyang Dai

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

Many stochastic differential equations that occur in financial modelling do not satisfy the standard assumptions made in convergence proofs of numerical schemes that are given in textbooks, i.e., their coefficients and the corresponding…

Numerical Analysis · Mathematics 2016-06-14 Peter Kloeden , Andreas Neuenkirch

We investigate stochastic differential equations with jumps and irregular coefficients, and obtain the existence and uniqueness of generalized stochastic flows. Moreover, we also prove the existence and uniqueness of $L^p$-solutions or…

Probability · Mathematics 2011-03-02 Xicheng Zhang

The solutions of parabolic and hyperbolic stochastic partial differential equations (SPDEs) driven by an infinite dimensional Brownian motion, which is a martingale, are in general not semi-martingales any more and therefore do not satisfy…

Numerical Analysis · Mathematics 2021-11-02 Arnulf Jentzen

We consider a class of general SDEs with a jump integral term driven by a time-inhomogeneous Poisson random measure. We propose a two-parameters Euler-type scheme for this SDE class and prove an optimal rate for the strong convergence with…

Probability · Mathematics 2025-08-07 Mireille Bossy , Paul Maurer
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