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The aim of this paper is to introduce a new Monte Carlo method based on importance sampling techniques for the simulation of stochastic differential equations. The main idea is to combine random walk on squares or rectangles methods with…

Probability · Mathematics 2010-10-22 Madalina Deaconu , Antoine Lejay

Polynomial stability of exact solution and modified truncated Euler-Maruyama method for stochastic differential equations with time-dependent delay are investigated in this paper. By using the well known discrete semimartingale convergence…

Probability · Mathematics 2018-01-16 Guangqiang Lan , Fang Xia , Qiushi Wang

Asymptotic error distribution for approximation of a stochastic integral with respect to continuous semimartingale by Riemann sum with general stochastic partition is studied. Effective discretization schemes of which asymptotic conditional…

Probability · Mathematics 2010-04-14 Masaaki Fukasawa

The aim of this paper is to develop and analyze numerical schemes for approximately solving the backward problem of subdiffusion equation involving a fractional derivative in time with order $\alpha\in(0,1)$. After using quasi-boundary…

Numerical Analysis · Mathematics 2020-10-28 Zhengqi Zhang , Zhi Zhou

A practical and accessible introduction to most probable phase portraits is given. The reader is assumed to be familiar with stochastic differential equations and Euler-Maruyama method in numerical simulation. The article first introduce…

Probability · Mathematics 2017-03-21 Bing Yang , Zhu Zeng , Ling Wang

In this paper, we present a numerical approach to solve the McKean-Vlasov equations, which are distribution-dependent stochastic differential equations, under some non-globally Lipschitz conditions for both the drift and diffusion…

Numerical Analysis · Mathematics 2023-05-30 Qian Guo , Jie He , Lei Li

We study strong approximation of $d$-dimensional stochastic differential equations (SDEs) with a discontinuous drift coefficient. More precisely, we essentially assume that the drift coefficient is piecewise Lipschitz continuous with an…

Numerical Analysis · Mathematics 2025-04-03 Thomas Müller-Gronbach , Christopher Rauhögger , Larisa Yaroslavtseva

This paper provides the mathematical foundation for polynomial diffusions. They play an important role in a growing range of applications in finance, including financial market models for interest rates, credit risk, stochastic volatility,…

Probability · Mathematics 2016-03-15 Damir Filipovic , Martin Larsson

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

This paper focuses on two variants of the Milstein scheme, namely the split-step backward Milstein method and a newly proposed projected Milstein scheme, applied to stochastic differential equations which satisfy a global monotonicity…

Numerical Analysis · Mathematics 2017-01-16 Wolf-Jürgen Beyn , Elena Isaak , Raphael Kruse

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

This paper investigates projected Euler-Maruyama method for stochastic delay differential equations under a global monotonicity condition. This condition admits some equations with highly nonlinear drift and diffusion coefficients. We…

Numerical Analysis · Mathematics 2018-10-24 Min Li , Chengming Huang

This paper concerns the numerical approximation for the invariant distribution of Markovian switching L\'evy-driven stochastic differential equations. By combining the tamed-adaptive Euler-Maruyama scheme with the Multi-level Monte Carlo…

Probability · Mathematics 2024-11-07 Hoang-Viet Nguyen , Trung-Thuy Kieu , Duc-Trong Luong , Hoang-Long Ngo , Tran Ngoc Khue

In this paper, we study numerical methods for the homogenization of linear second-order elliptic equations in nondivergence-form with periodic diffusion coefficients and large drift terms. Upon noting that the effective diffusion matrix can…

Numerical Analysis · Mathematics 2025-06-18 Timo Sprekeler , Han Wu , Zhiwen Zhang

We introduce a new class of numerical methods for solving McKean-Vlasov stochastic differential equations, which are relevant in the context of distribution-dependent or mean-field models, under super-linear growth conditions for both the…

Numerical Analysis · Mathematics 2025-02-10 Jiamin Jian , Qingshuo Song , Xiaojie Wang , Zhongqiang Zhang , Yuying Zhao

The present work provides a critical assessment of numerical solutions of the space-fractional diffusion-advection equation, which is of high significance for applications in various natural sciences. In view of the fact that, in contrast…

Statistical Mechanics · Physics 2014-10-27 Robin Stern , Frederic Effenberger , Horst Fichtner , Tobias Schaefer

Inspired by the truncated Euler-Maruyama method developed in Mao (J. Comput. Appl. Math. 2015), we propose the truncated Milstein method in this paper. The strong convergence rate is proved to be close to 1 for a class of highly non-linear…

Numerical Analysis · Mathematics 2017-07-07 Qian Guo , Wei Liu , Xuerong Mao , Rongxian Yue

In this paper, we focus on numerical approximations of Piecewise Diffusion Markov Processes (PDifMPs), particularly when the explicit flow maps are unavailable. Our approach is based on the thinning method for modelling the jump mechanism…

Numerical Analysis · Mathematics 2024-08-23 Evelyn Buckwar , Amira Meddah

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

We address the problem of approximating the moments of the solution, $\boldsymbol{X}(t)$, of an It\^o stochastic differential equation (SDE) with drift and a diffusion terms over a time-grid $t_0, t_1, \ldots, t_n$. In particular, we assume…

Numerical Analysis · Mathematics 2021-06-14 Albert López-Yela , Joaquin Miguez