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The aim of this paper is to obtain convergence in mean in the uniform topology of piecewise linear approximations of Stochastic Differential Equations (SDEs) with $C^1$ drift and $C^2$ diffusion coefficients with uniformly bounded…

Probability · Mathematics 2025-03-13 Sahani Pathiraja

In this paper, we study forward-backward doubly stochastic differential equations driven by Brownian motions and Poisson process (FBDSDEP in short). Both the probabilistic interpretation for the solutions to a class of quasilinear…

Probability · Mathematics 2010-05-17 Qingfeng Zhu , Yufeng Shi

We study a compound Poisson (random time-change) approximation for stochastic differential equations (SDEs) and stochastic Volterra equations whose coefficients may be merely measurable in time and may even exhibit integrable singularities.…

Probability · Mathematics 2026-03-10 Xicheng Zhang , Yuanlong Zhao

We address a general optimal switching problem over finite horizon for a stochastic system described by a differential equation driven by Brownian motion. The main novelty is the fact that we allow for infinitely many modes (or regimes,…

Optimization and Control · Mathematics 2019-08-07 Marco Fuhrman , Marie-Amélie Morlais

This paper investigates the approximation of stochastic delay differential equations (SDDEs) via the backward Euler-Maruyama (BEM) method under generalized monotonicity and Khasminskii-type conditions in the infinite horizon. First, by…

Numerical Analysis · Mathematics 2025-05-20 Yudong Wang , Hongjiong Tian

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

We introduce a canonical way of performing the joint lift of a Brownian motion $W$ and a low-regularity adapted stochastic rough path $\mathbf{X}$, extending [Diehl, Oberhauser and Riedel (2015). A L\'evy area between Brownian motion and…

Mathematical Finance · Quantitative Finance 2026-03-10 Ofelia Bonesini , Emilio Ferrucci , Ioannis Gasteratos , Antoine Jacquier

In this paper numerical methods for solving stochastic differential equations with Markovian switching (SDEwMSs) are developed by pathwise approximation. The proposed family of strong predictor-corrector Euler-Maruyama methods is designed…

Numerical Analysis · Mathematics 2011-03-08 Jun Ye , Haibo Li , Lili Xiao

This paper investigates the probability distribution of solutions to McKean--Vlasov stochastic differential equations driven by fractional Brownian motion with Hurst parameter H>1/2. Our main contribution is the derivation of the associated…

Probability · Mathematics 2026-01-12 Saloua Labed , Nacira Agram , Bernt Oksendal

In the present article we study strong approximation of solutions of scalar stochastic differential equations (SDEs) with bounded and $\alpha$-H\"older continuous drift coefficient and constant diffusion coefficient at time point $1$.…

Probability · Mathematics 2025-04-30 Simon Ellinger , Thomas Müller-Gronbach , Larisa Yaroslavtseva

We investigate the convergence rate for the time discretization of a class of quadratic backward SDEs -- potentially involving path-dependent terminal values -- when coupled with non-standard Lipschitz-type forward SDEs. In our review of…

Probability · Mathematics 2024-12-12 Rhoss Likibi Pellat , Emmanuel Che Fonka , Olivier Menoukeu Pamen

In this paper we propose and analyze explicit space-time discrete numerical approximations for additive space-time white noise driven stochastic partial differential equations (SPDEs) with non-globally monotone nonlinearities such as the…

Numerical Analysis · Mathematics 2020-06-04 Arnulf Jentzen , Diyora Salimova , Timo Welti

We are interested in the following two $\mathbb{R}^d$-valued stochastic differential equations (SDEs): \begin{gather*} d X_t=b(X_t)\,d t + \sigma\,d L_t, \quad X_0=x, %\label{BM-SDE} d Y_t=b(Y_t)\,d t + \sigma\,d B_t, \quad Y_0=y,…

Probability · Mathematics 2024-03-06 Changsong Deng , Rene L. Schilling , Lihu Xu

This paper is concerned with a general non-homogeneous stochastic linear quadratic (LQ) control problem with regime switching and random coefficients. We obtain the explicit optimal state feedback control and optimal value for this problem…

Optimization and Control · Mathematics 2023-07-17 Ying Hu , Xiaomin Shi , Zuo Quan Xu

In the past decade, an intensive study of strong approximation of stochastic differential equations (SDEs) with a drift coefficient that has discontinuities in space has begun. In the majority of these results it is assumed that the drift…

Probability · Mathematics 2020-10-05 Thomas Müller-Gronbach , Larisa Yaroslavtseva

Avikainen provided a sharp upper bound of the difference $\mathbb{E}[|g(X)-g(\widehat{X})|^{q}]$ by the moments of $|X-\widehat{X}|$ for any one-dimensional random variables $X$ with bounded density and $\widehat{X}$, and function of…

Probability · Mathematics 2020-03-09 Dai Taguchi

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

In this work, we study the numerical approximation of a class of singular fully coupled forward backward stochastic differential equations. These equations have a degenerate forward component and non-smooth terminal condition. They are…

Numerical Analysis · Mathematics 2022-08-17 Jean-François Chassagneux , Mohan Yang

We study stochastic differential equations (SDEs) with multiplicative Stratonovich-type noise of the form $ dX_t = b(X_t) dt + \sigma(X_t)\circ d W_t, X_0=x_0\in\mathbb{R}^d, t\geq0,$ with a possibly singular drift $b\in…

Probability · Mathematics 2021-09-28 Chengcheng Ling , Sebastian Riedel , Michael Scheutzow

This paper addresses reflected backward stochastic differential equations (RBSDE hereafter) that take the form of \begin{eqnarray*} \begin{cases} dY_t=f(t,Y_t, Z_t)d(t\wedge\tau)+Z_tdW_t^{\tau}+dM_t-dK_t,\quad Y_{\tau}=\xi, Y\geq…

Probability · Mathematics 2021-07-27 Safa Alsheyab , Tahir Choulli
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