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The multilevel Monte Carlo (MLMC) method is highly efficient for estimating expectations of a functional of a solution to a stochastic differential equation (SDE). However, MLMC estimators may be unstable and have a poor (noncanonical)…

Computational Finance · Quantitative Finance 2024-05-07 Christian Bayer , Chiheb Ben Hammouda , Raul Tempone

In the field of computational finance, one is commonly interested in the expected value of a financial derivative whose payoff depends on the solution of stochastic differential equations (SDEs). For multi-dimensional SDEs with…

Numerical Analysis · Mathematics 2024-09-12 Chenxu Pang , Xiaojie Wang

We present a novel multilevel Monte Carlo approach for estimating quantities of interest for stochastic partial differential equations (SPDEs). Drawing inspiration from [Giles and Szpruch: Antithetic multilevel Monte Carlo estimation for…

Numerical Analysis · Mathematics 2025-04-15 Abdul-Lateef Haji-Ali , Andreas Stein

In this article we develop a new sequential Monte Carlo (SMC) method for multilevel (ML) Monte Carlo estimation. In particular, the method can be used to estimate expectations with respect to a target probability distribution over an…

Computation · Statistics 2017-03-16 Alexandros Beskos , Ajay Jasra , Kody Law , Youssef Marzouk , Yan Zhou

In this article we consider the approximation of expectations w.r.t. probability distributions associated to the solution of partial differential equations (PDEs); this scenario appears routinely in Bayesian inverse problems. In practice,…

Computation · Statistics 2017-02-07 Alexandros Beskos , Ajay Jasra , Kody Law , Raul Tempone , Yan Zhou

We develop new multilevel Monte Carlo (MLMC) methods to estimate the expectation of the smallest eigenvalue of a stochastic convection-diffusion operator with random coefficients. The MLMC method is based on a sequence of finite element…

Numerical Analysis · Mathematics 2024-02-13 Tiangang Cui , Hans De Sterck , Alexander D. Gilbert , Stanislav Polishchuk , Robert Scheichl

A higher-order change-of-measure multilevel Monte Carlo (MLMC) method is developed for computing weak approximations of the invariant measures of SDE with drift coefficients that do not satisfy the contractivity condition. This is achieved…

Numerical Analysis · Mathematics 2024-03-12 Sankarasubramanian Ragunathan , Håkon Andreas Hoel

The Multilevel Monte Carlo (MLMC) approach usually works well when estimating the expected value of a quantity which is a Lipschitz function of intermediate quantities, but if it is a discontinuous function it can lead to a much slower…

Numerical Analysis · Mathematics 2023-09-06 Michael B Giles

We propose and analyse a new Milstein type scheme for simulating stochastic differential equations (SDEs) with highly nonlinear coefficients. Our work is motivated by the need to justify multi-level Monte Carlo simulations for…

Numerical Analysis · Mathematics 2012-04-10 Desmond J. Higham , Xuerong Mao , Lukasz Szpruch

The present article aims to design and analyze efficient first-order strong schemes for a generalized A\"{i}t-Sahalia type model arising in mathematical finance and evolving in a positive domain $(0, \infty)$, which possesses a diffusion…

Numerical Analysis · Mathematics 2024-07-15 Yingsong Jiang , Ruishu Liu , Xiaojie Wang , Jinghua Zhuo

We present a new antithetic multilevel Monte Carlo (MLMC) method for the estimation of expectations with respect to laws of diffusion processes that can be elliptic or hypo-elliptic. In particular, we consider the case where one has to…

Numerical Analysis · Mathematics 2025-04-29 Yuga Iguchi , Ajay Jasra , Mohamed Maama , Alexandros Beskos

This article reviews the application of advanced Monte Carlo techniques in the context of Multilevel Monte Carlo (MLMC). MLMC is a strategy employed to compute expectations which can be biased in some sense, for instance, by using the…

Computation · Statistics 2017-04-25 Ajay Jasra , Kody Law , Carina Suciu

This article considers the sequential Monte Carlo (SMC) approximation of ratios of normalizing constants associated to posterior distributions which in principle rely on continuum models. Therefore, the Monte Carlo estimation error and the…

Computation · Statistics 2016-03-04 Pierre Del Moral , Ajay Jasra , Kody Law , Yan Zhou

We develop a framework that allows the use of the multi-level Monte Carlo (MLMC) methodology (Giles2015) to calculate expectations with respect to the invariant measure of an ergodic SDE. In that context, we study the (over-damped) Langevin…

Numerical Analysis · Mathematics 2019-08-13 Michael B. Giles , Mateusz B. Majka , Lukasz Szpruch , Sebastian Vollmer , Konstantinos Zygalakis

In this paper we introduce a new multilevel Monte Carlo (MLMC) estimator for multi-dimensional SDEs driven by Brownian motions. Giles has previously shown that if we combine a numerical approximation with strong order of convergence…

Computational Finance · Quantitative Finance 2014-05-19 Michael B. Giles , Lukasz Szpruch

We introduce three related but distinct improvements to multilevel Monte Carlo (MLMC) methods for the solution of systems of stochastic differential equations (SDEs). Firstly, we show that when the payoff function is twice continuously…

Numerical Analysis · Mathematics 2013-09-10 L. F. Ricketson

In this paper, we introduce the $\sigma$-antithetic multilevel Monte Carlo (MLMC) estimator for a multi-dimensional diffusion which is an extended version of the original antithetic MLMC one introduced by Giles and Szpruch \cite{a}. Our aim…

Probability · Mathematics 2024-01-26 Mohamed Ben Alaya , Ahmed Kebaier , Thi Bao Tram Ngo

This paper addresses optimization problems constrained by partial differential equations with uncertain coefficients. In particular, the robust control problem and the average control problem are considered for a tracking type cost…

Optimization and Control · Mathematics 2017-11-08 Andreas Van Barel , Stefan Vandewalle

General elliptic equations with spatially discontinuous diffusion coefficients may be used as a simplified model for subsurface flow in heterogeneous or fractured porous media. In such a model, data sparsity and measurement errors are often…

Numerical Analysis · Mathematics 2022-08-29 Andrea Barth , Robin Merkle

While multilevel Monte Carlo (MLMC) methods for the numerical approximation of partial differential equations with random coefficients enjoy great popularity, combinations with spatial adaptivity seem to be rare. We present an adaptive MLMC…

Numerical Analysis · Mathematics 2017-12-20 Ralf Kornhuber , Evgenia Youett
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