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We consider numerical methods for linear parabolic equations in one spatial dimension having piecewise constant diffusion coefficients defined by a one parameter family of interface conditions at the discontinuity. We construct immersed…

Numerical Analysis · Mathematics 2013-10-31 V. A. Bokil , N. L. Gibson , S. L. Nguyen , E. A. Thomann , E. Waymire

We consider the numerical approximation of a general second order semi--linear parabolic stochastic partial differential equation (SPDE) driven by additive space-time noise. We introduce a new modified scheme using a linear functional of…

Numerical Analysis · Mathematics 2016-07-20 Gabriel J Lord , Antoine Tambue

An implicit Euler--Maruyama method with non-uniform step-size applied to a class of stochastic partial differential equations is studied. A spectral method is used for the spatial discretization and the truncation of the Wiener process. A…

Numerical Analysis · Mathematics 2018-04-11 Yoshihito Kazashi

The semi-implicit Euler-Maruyama (EM) method is investigated to approximate a class of time-changed stochastic differential equations, whose drift coefficient can grow super-linearly and diffusion coefficient obeys the global Lipschitz…

Numerical Analysis · Mathematics 2019-07-29 Chang-Song Deng , Wei Liu

The strong convergence of the semi-implicit Euler-Maruyama (EM) method for stochastic differential equations with non-linear coefficients driven by a class of L\'evy processes is investigated. The dependence of the convergence order of the…

Numerical Analysis · Mathematics 2023-11-21 Xiaotong Li , Wei Liu , Hongjiong Tian

We study the strong rates of the Euler-Maruyama approximation for one dimensional stochastic differential equations whose drift coefficient may be neither continuous nor one-sided Lipschitz and diffusion coefficient is H\"older continuous.…

Probability · Mathematics 2016-07-21 Hoang-Long Ngo , Dai Taguchi

We study the strong approximation of stochastic differential equations with discontinuous drift coefficients and (possibly) degenerate diffusion coefficients. To account for the discontinuity of the drift coefficient we construct an…

Numerical Analysis · Mathematics 2019-04-25 Andreas Neuenkirch , Michaela Szölgyenyi , Lukasz Szpruch

We prove strong convergence of order $1/4-\epsilon$ for arbitrarily small $\epsilon>0$ of the Euler-Maruyama method for multidimensional stochastic differential equations (SDEs) with discontinuous drift and degenerate diffusion coefficient.…

Numerical Analysis · Mathematics 2019-01-23 Gunther Leobacher , Michaela Szölgyenyi

We study the Euler scheme for scalar non-autonomous stochastic differential equations, whose diffusion coefficient is not globally Lipschitz but a fractional power of a globally Lipschitz function. We analyse the strong error and establish…

Numerical Analysis · Mathematics 2024-01-17 Annalena Mickel , Andreas Neuenkirch

Since it is difficult to implement implicit schemes on the infinite-dimensional space, we aim to develop the explicit numerical method for approximating super-linear stochastic functional differential equations (SFDEs). Precisely, borrowing…

Numerical Analysis · Mathematics 2022-08-23 Xiaoyue Li , Xuerong Mao , Guoting Song

Reflected diffusions in polyhedral domains are commonly used as approximate models for stochastic processing networks in heavy traffic. Stationary distributions of such models give useful information on the steady state performance of the…

Probability · Mathematics 2012-05-24 Amarjit Budhiraja , Jiang Chen , Sylvain Rubenthaler

This paper presents and analyzes the compensated projected Euler-Maruyama method for stochastic differential equations with jumps under a global monotonicity condition. Compared with existing conditions, this condition allows the…

Numerical Analysis · Mathematics 2018-12-11 Min Li , Chengming Huang

This paper aims at developing a systematic study for the weak rate of convergence of the Euler-Maruyama scheme for stochastic differential equations with very irregular drift and constant diffusion coefficients. We apply our method to…

Probability · Mathematics 2017-04-27 Hoang-Long Ngo , Dai Taguchi

We consider the Euler-Maruyama approximation for multi-dimensional stochastic differential equations with irregular coefficients. We provide the rate of strong convergence where the possibly discontinuous drift coefficient satisfies a…

Probability · Mathematics 2014-04-11 Hoang-Long Ngo , Dai Taguchi

We study parameter estimation for univariate stochastic differential equations with locally Lipschitz drift and H\"older continuous multiplicative diffusion, a class commonly arising in several applications. Existing inference methods…

Methodology · Statistics 2026-05-19 Bowen Fang , Dario Spanò , Massimiliano Tamborrino

In this paper we consider multi-dimensional partial differential equations of parabolic type involving divergence form operators that possess a discontinuous coefficient matrix along some smooth interface. The solution of the equation is…

Probability · Mathematics 2020-03-27 Pierre Etore , Miguel Martinez

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

In this paper, we propose a semi-implicit Euler scheme to discretize the stochastic nonlinear Maxwell equations with multiplicative Ito noise, which is implicit in the drift term and explicit in the diffusion term of the equations, in order…

Numerical Analysis · Mathematics 2018-03-01 Chuchu Chen , Jialin Hong , Lihai Ji

In the present paper, we introduce a numerical scheme for the price of a barrier option when the price of the underlying follows a diffusion process. The numerical scheme is based on an extension of a static hedging formula of barrier…

Computational Finance · Quantitative Finance 2012-08-21 Yuri Imamura , Yuta Ishigaki , Takuya Kawagoe , Toshiki Okumura

This paper focuses on the numerical scheme for multiple-delay stochastic differential equations with partially H\"older continuous drifts and locally H\"older continuous diffusion coefficients. To handle with the superlinear terms in…

Numerical Analysis · Mathematics 2024-03-19 Zhuoqi Liu , Zhaohang Wang , Siying Sun , Shuaibin Gao
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