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We prove an existence and uniqueness result for Neumann boundary problem of a parabolic partial differential equation (PDE for short) with a singular nonlinear divergence term which can only be understood in a weak sense. A probabilistic…

Probability · Mathematics 2018-02-22 Xue Yang , Jing Zhang

We discuss an impact of various (path-wise) reflection-from-the barrier scenarios upon confining properties of a paradigmatic family of symmetric $\alpha $-stable L\'{e}vy processes, whose permanent residence in a finite interval on a line…

Statistical Mechanics · Physics 2022-07-19 Piotr Garbaczewski , Mariusz Żaba

In this paper we investigate zero-sum two-player stochastic differential games whose cost functionals are given by doubly controlled reflected backward stochastic differential equations (RBSDEs) with two barriers. For admissible controls…

Optimization and Control · Mathematics 2008-04-03 Rainer Buckdahn , Juan Li

We consider the simulation of a system of decoupled forward-backward stochastic differential equations (FBSDEs) driven by a pure jump L\'evy process $L$ and an independent Brownian motion $B$. We allow the L\'evy process $L$ to have an…

Probability · Mathematics 2023-06-13 Till Massing

We examine the Langevin diffusion confined to a closed, convex domain $D\subset\mathbb{R}^d$, represented as a reflected stochastic differential equation. We introduce a sequence of penalized stochastic differential equations and prove that…

Probability · Mathematics 2026-01-22 Tarika Mane , Amine Boukardagha

In the framework of fractional stochastic calculus, we study the existence and the uniqueness of the solution for a backward stochastic differential equation, formally written as: [{[c]{l}% -dY(t)= f(t,\eta(t),Y(t),Z(t))dt-Z(t)\delta…

Probability · Mathematics 2015-10-30 Lucian Maticiuc , Tianyang Nie

In this article we develop a method for the strong approximation of stochastic differential equations (SDEs) driven by L\'evy processes or general semimartingales. The main ingredients of our method is the perturbation of the SDE and the…

Probability · Mathematics 2015-03-13 Antonis Papapantoleon , Maria Siopacha

Stochastic Differential Equations (SDEs) were originally devised by It\^o to provide a pathwise construction of diffusion processes. A less explored approach to represent them is through Time Change Equations (TCEs) as put forth by Doeblin.…

Probability · Mathematics 2024-03-25 Miriam Ramírez , Gerónimo Uribe Bravo

Motivated by classical considerations from risk theory, we investigate boundary crossing problems for refracted L\'evy processes. The latter is a L\'evy process whose dynamics change by subtracting off a fixed linear drift (of suitable…

Probability · Mathematics 2008-05-12 Andreas E. Kyprianou , Ronnie Loeffen

In this article we prove the pathwise uniqueness for stochastic differential equations in $\mR^d$ with time-dependent Sobolev drifts, and driven by symmetric $\alpha$-stable processes provided that $\alpha\in(1,2)$ and its spectral measure…

Probability · Mathematics 2011-01-17 Xicheng Zhang

In this paper, our primary focus lies in the thorough investigation of a specific category of nonlinear fully coupled forward-backward stochastic differential equations involving time delays and advancements with the incorporation of…

Optimization and Control · Mathematics 2023-10-23 Maozhong Xu , Maoning Tang , Qingxin Meng

In this paper, we study the reflected stochastic differential equations driven by G-Brownian motion (reflected G-SDEs) with two nonlinear constraints. With the help of the Skorokhod problem with nonlinear constraints, we first study the…

Probability · Mathematics 2026-04-27 Hanwu Li

We give necessary and sufficient condition for existence and uniqueness of $\mathbb{L}^{p}$-solutions of reflected BSDEs with continuous barrier, generator monotone with respect to $y$ and Lipschitz continuous with respect to $z$, and with…

Probability · Mathematics 2018-10-09 Tomasz Klimsiak

We study Neumann type boundary value problems for nonlocal equations related to L\'evy processes. Since these equations are nonlocal, Neumann type problems can be obtained in many ways, depending on the kind of reflection we impose on the…

Analysis of PDEs · Mathematics 2011-12-05 Guy Barles , Emmanuel Chasseigne , Christine Georgelin , Espen Jakobsen

We prove that weakly continuous solutions to martingale problems admit a canonical regular conditional probability distribution. This allows for the construction of time consistent convex dynamic procedures in a non dominated setting.…

Probability · Mathematics 2012-10-09 Jocelyne Bion-Nadal

In this paper we present two numerical schemes of approximating solutions of backward doubly stochastic differential equations (BDSDEs for short). We give a method to discretize a BDSDE. And we also give the proof of the convergence of…

Probability · Mathematics 2008-06-05 Yufeng Shi , Weiqiang Yang , Jing Yuan

The important application of semi-static hedging in financial markets naturally leads to the notion of quasi self-dual processes. The focus of our study is to give new characterizations of quasi self-duality for exponential L\'evy processes…

Risk Management · Quantitative Finance 2012-01-26 Thorsten Rheinländer , Michael Schmutz

We solve a class of doubly reflected backward stochastic differential equation whose generator depends on the resistance due to reflections, which extend the recent work of Qian and Xu on reflected BSDE with one barrier. We then obtain the…

Probability · Mathematics 2011-10-28 Soufiane Aazizi

Bilevel optimization enjoys a wide range of applications in emerging machine learning and signal processing problems such as hyper-parameter optimization, image reconstruction, meta-learning, adversarial training, and reinforcement…

Machine Learning · Computer Science 2025-01-08 Han Shen , Quan Xiao , Tianyi Chen

We consider the problem of the simulation of Levy-driven stochastic differential equations. It is generally impossible to simulate the increments of a Levy-process. Thus in addition to an Euler scheme, we have to simulate approximately…

Probability · Mathematics 2009-01-21 Nicolas Fournier