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We prove mean-square convergence of a novel numerical method, the tamed-splitting method, for a generalized Ait-Sahalia interest rate model. The method is based on a Lamperti transform, splitting and applying a tamed numerical method for…

Numerical Analysis · Mathematics 2022-12-05 Gabriel Lord Mengchao Wang

Stochastic differential equations are often simulated with the Monte Carlo Euler method. Convergence of this method is well understood in the case of globally Lipschitz continuous coefficients of the stochastic differential equation. The…

Numerical Analysis · Mathematics 2011-11-18 Martin Hutzenthaler , Arnulf Jentzen

On the one hand, the explicit Euler scheme fails to converge strongly to the exact solution of a stochastic differential equation (SDE) with a superlinearly growing and globally one-sided Lipschitz continuous drift coefficient. On the other…

Numerical Analysis · Mathematics 2012-09-13 Martin Hutzenthaler , Arnulf Jentzen , Peter E. Kloeden

We study the strong convergence order of the Euler-Maruyama scheme for scalar stochastic differential equations with additive noise and irregular drift. We provide a general framework for the error analysis by reducing it to a weighted…

Probability · Mathematics 2020-11-03 Andreas Neuenkirch , Michaela Szölgyenyi

In this paper, we consider a class of stochastic differential equations driven by symmetric non-degenerate $\alpha$-stable processes (including cylindrical ones) with $\alpha \in (1,2)$. We first establish a quantitative estimate for the…

Probability · Mathematics 2026-04-10 Zimo Hao , Mingyan Wu

A kinetic model with flexible velocities is presented for solving the multi-component Euler equations. The model employs a two-velocity formulation in 1D and a three-velocity formulation in 2D. In 2D, the velocities are aligned with the…

Fluid Dynamics · Physics 2026-02-17 Shashi Shekhar Roy , S. V. Raghurama Rao

Existing fundamental theorems for mean-square convergence of numerical methods for stochastic differential equations (SDEs) require globally or one-sided Lipschitz continuous coefficients, while strong convergence results under merely local…

Probability · Mathematics 2026-02-16 Pierre Étoré , Anna Melnykova , Irene Tubikanec

We study the properties of a semi-implicit Euler scheme that is widely used in time discretization of Keller-Segel equations both in the parabolic-elliptic form and the parabolic-parabolic form. We prove that this linear, decoupled,…

Numerical Analysis · Mathematics 2025-03-04 Xueling Huang , Olivier Goubet , Jie Shen

We introduce a class of explicit balanced schemes for stochastic differential equations with coefficients of superlinearly growth satisfying a global monotone condition. The first scheme is a balanced Euler scheme and is of order half in…

Numerical Analysis · Mathematics 2017-05-23 Zhongqiang Zhang , Heping Ma

In this paper, we present a kinetic model with flexible velocities that satisfy positivity preservation conditions for the Euler equations. Our 1D kinetic model consists of two velocities and employs both the asymmetrical and symmetrical…

Fluid Dynamics · Physics 2025-12-16 Shashi Shekhar Roy , S. V. Raghurama Rao

The present work introduces and investigates an explicit time discretization scheme, called the projected Euler method,to numerically approximate random periodic solutions of semi-linear SDEs under non-globally Lipschitz conditions. The…

Numerical Analysis · Mathematics 2024-11-26 Yujia Guo , Xiaojie Wang , Yue Wu

This paper is concerned with strong convergence of a tamed $\theta$-Euler-Maruyama scheme for neutral stochastic differential delay equations with superlinearly growing coefficients. We not only prove the strong convergence of implicit…

Probability · Mathematics 2017-07-10 Li Tan , Chenggui Yuan

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

The convergence of the first order Euler scheme and an approximative variant thereof, along with convergence rates, are established for rough differential equations driven by c\`adl\`ag paths satisfying a suitable criterion, namely the…

Probability · Mathematics 2025-09-16 Andrew L. Allan , Anna P. Kwossek , Chong Liu , David J. Prömel

In this work a simple method to enforce the positivity-preserving property for general high-order conservative schemes is proposed. The method keeps the original scheme unchanged and detects critical numerical fluxes which may lead to…

Fluid Dynamics · Physics 2017-02-09 X. Y. Hu , N. A. Adams , C. -W. Shu

While the original Ait-Sahalia interest rate model has been found considerable use as a model for describing time series evolution of interest rates, it may not possess adequate specifications to explain responses of interest rates to…

Risk Management · Quantitative Finance 2021-07-29 Emmanuel Coffie

We consider the problem of the approximation of the solution of a one-dimensional SDE with non-globally Lipschitz drift and diffusion coefficients behaving as $x^\alpha$, with $\alpha>1$. We propose an (semi-explicit) exponential-Euler…

Probability · Mathematics 2022-11-30 Mireille Bossy , Jean Francois Jabir , Kerlyns Martinez

Over the last few decades, the numerical methods for stochastic differential delay equations (SDDEs) have been investigated and developed by many scholars. Nevertheless, there is still little work to be completed. By virtue of the novel…

Numerical Analysis · Mathematics 2022-09-21 Zhuoqi Liu , Qian Guo , Shuaibin Gao

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

In this paper we investigate the convergence rate of Euler-Maruyama scheme for a class of stochastic differential delay equations, where the corresponding coefficients may be highly nonlinear with respect to the delay variables. In…

Probability · Mathematics 2011-11-18 Jianhai Bao , Chenggui Yuan