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In this note we prove sharp lower error bounds for numerical methods for jump-diffusion stochastic differential equations (SDEs) with discontinuous drift. We study the approximation of jump-diffusion SDEs with non-adaptive as well as…

Numerical Analysis · Mathematics 2023-12-06 Paweł Przybyłowicz , Verena Schwarz , Michaela Szölgyenyi

We present an adaptive approximation scheme for jump-diffusion SDEs with discontinuous drift and (possibly) degenerate diffusion. This transformation-based doubly-adaptive quasi-Milstein scheme is the first scheme that has strong…

Numerical Analysis · Mathematics 2026-03-10 Verena Schwarz

A new class of explicit Milstein 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…

Probability · Mathematics 2016-01-13 Chaman Kumar , Sotirios Sabanis

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

Probability · Mathematics 2021-03-01 Larisa Yaroslavtseva

In this paper we study strong approximation of the solution of a scalar stochastic differential equation (SDE) at the final time in the case when the drift coefficient may have discontinuities in space. Recently it has been shown in…

Probability · Mathematics 2019-04-22 Thomas Müller-Gronbach , Larisa Yaroslavtseva

We study pathwise approximation of strong solutions of scalar stochastic differential equations (SDEs) at a single time in the presence of discontinuities of the drift coefficient. Recently, it has been shown by M\"uller-Gronbach and…

Probability · Mathematics 2024-02-23 Simon Ellinger

We investigate the error of the randomized Milstein algorithm for solving scalar jump-diffusion stochastic differential equations. We provide a complete error analysis under substantially weaker assumptions than known in the literature. In…

Numerical Analysis · Mathematics 2023-12-06 Paweł Przybyłowicz , Verena Schwarz , Michaela Szölgyenyi

We study strong approximation of $d$-dimensional stochastic differential equations (SDEs) with a discontinuous drift coefficient driven by a $d$-dimensional Brownian motion $W$. More precisely, we essentially assume that the drift…

Probability · Mathematics 2025-05-22 Christopher Rauhögger

In this paper we study jump-diffusion stochastic differential equations (SDEs) with a discontinuous drift coefficient and a possibly degenerate diffusion coefficient. Such SDEs appear in applications such as optimal control problems in…

Numerical Analysis · Mathematics 2021-01-15 Paweł Przybyłowicz , Michaela Szölgyenyi

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

We propose a new explicit numerical scheme for stochastic differential equation with super-linearly growing drift and linearly growing diffusion coefficients which are also twice continuously differentiable. The rate of strong convergence…

Probability · Mathematics 2018-06-04 Tejinder Kumar , Chaman Kumar

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

The problem of the construction of strong approximations with a given order of convergence for jump-diffusion equations is studied. General approximation schemes are constructed for L\'evy type stochastic differential equation. In…

Probability · Mathematics 2015-12-22 Michał Barski

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

A conjecture appears in \cite{milsteinscheme}, in the form of a remark, where it is stated that it is possible to construct, in a specified way, any high order explicit numerical schemes to approximate the solutions of SDEs with superlinear…

Probability · Mathematics 2018-11-07 Sotirios Sabanis , Ying Zhang

An explicit first-order drift-randomized Milstein scheme for a regime switching stochastic differential equation is proposed and its bi-stability and rate of strong convergence are investigated for a non-differentiable drift coefficient.…

Probability · Mathematics 2025-03-11 Divyanshu Vashistha , Chaman Kumar

We introduce a semi-implicit Milstein approximation scheme for some class of non-colliding particle systems modeled by systems of stochastic differential equations with non-constant diffusion coefficients. We show that the scheme converges…

Probability · Mathematics 2019-08-13 Hoang-Long Ngo , Duc-Trong Luong

In this work, an adaptive time-stepping Milstein method is constructed for stochastic differential equations with piecewise continuous arguments (SDEPCAs), where the drift is one-sided Lipschitz continuous and the diffusion does not impose…

Numerical Analysis · Mathematics 2025-02-25 Yuhang Zhang , Minghui Song , Jiaqi Zhu

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 study the $L^p$ rate of convergence of the Milstein scheme for SDEs when the drift coefficients possess only H\"older regularity. If the diffusion is elliptic and sufficiently regular, we obtain rates consistent with the additive case.…

Probability · Mathematics 2024-12-12 Máté Gerencsér , Gerald Lampl , Chengcheng Ling
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