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Backward stochastic differential equations extend the martingale representation theorem to the nonlinear setting. This can be seen as path-dependent counterpart of the extension from the heat equation to fully nonlinear parabolic equations…

Probability · Mathematics 2022-02-14 Yiqing Lin , Zhenjie Ren , Nizar Touzi , Junjian Yang

We present a comprehensive discretization scheme for linear and nonlinear stochastic differential equations (SDEs) driven by either Brownian motions or $\alpha$-stable processes. Our approach utilizes compound Poisson particle…

Probability · Mathematics 2023-07-14 Xicheng Zhang

In this paper, we provide conditions which ensure that stochastic Lipschitz BSDEs admit Malliavin differentiable solutions. We investigate the problem of existence of densities for the first components of solutions to general path-dependent…

Probability · Mathematics 2016-02-22 Thibaut Mastrolia

Inspired by the works of Rodnianski and Schlein and Wu, we derive a new nonlinear Schr\"odinger equation that describes a second-order correction to the usual tensor product (mean-field) approximation for the Hamiltonian evolution of a…

Mathematical Physics · Physics 2015-09-29 Manoussos G. Grillakis , Matei Machedon , Dionisios Margetis

We introduce a variant of the Barndorff-Nielsen and Shephard stochastic volatility model where the non Gaussian Ornstein-Uhlenbeck process describes some measure of trading intensity like trading volume or number of trades instead of…

Statistical Finance · Quantitative Finance 2008-12-02 Friedrich Hubalek , Petra Posedel

A parareal algorithm based on an exponential $\theta$-scheme is proposed for the stochastic Schr\"odinger equation with weak damping and additive noise. It proceeds as a two-level temporal parallelizable integrator with the exponential…

Numerical Analysis · Mathematics 2018-03-28 Jialin Hong , Xu Wang , Liying Zhang

We introduce a class of second order backward stochastic differential equations and show relations to fully non-linear parabolic PDEs. In particular, we provide a stochastic representation result for solutions of such PDEs and discuss Monte…

Probability · Mathematics 2007-05-23 Patrick Cheridito , H. Mete Soner , Nizar Touzi , Nicolas Victoir

The paper derives the optimal second-order coding rate for the continuous-time Poisson channel. We also obtain bounds on the third-order coding rate. This is the first instance of a second-order result for a continuous-time channel. The…

Information Theory · Computer Science 2020-08-18 Yuta Sakai , Vincent Y. F. Tan , Mladen Kovačević

We consider Backward Stochastic Differential Equations in a setting where noise is generated by a countable state, continuous time Markov chain, and the terminal value is prescribed at a stopping time. We show that, given sufficient…

Probability · Mathematics 2013-02-20 Samuel N. Cohen

Numerical methods for stochastic partial differential equations typically estimate moments of the solution from sampled paths. Instead, we shall directly target the deterministic equations satisfied by the first and second moments, as well…

Numerical Analysis · Mathematics 2020-11-17 Kristin Kirchner

A robust control problem is considered in this paper, where the controlled stochastic differential equations (SDEs) include ambiguity parameters and their coefficients satisfy non-Lipschitz continuous and non-linear growth conditions, the…

Mathematical Finance · Quantitative Finance 2022-08-24 Zhou Yang , Jing Zhang , Chao Zhou

We propose a new second-order accurate lattice Boltzmann scheme that solves the quasi-static equations of linear elasticity in two dimensions. In contrast to previous works, our formulation solves for a single distribution function with a…

Numerical Analysis · Mathematics 2022-12-14 Oliver Boolakee , Martin Geier , Laura De Lorenzis

Multiscale stochastic volatility models have been developed as an efficient way to capture the principle effects on derivative pricing and portfolio optimization of randomly varying volatility. The recent book Fouque, Papanicolaou, Sircar…

Computational Finance · Quantitative Finance 2015-09-17 Jean-Pierre Fouque , Matthew Lorig , Ronnie Sircar

Motivated by a bidimensional discrete-time risk model in insurance, we study the second-order asymptotics for two kinds of tail probabilities of the stochastic discounted value of aggregate net losses including two business lines. These are…

Probability · Mathematics 2025-01-22 Bingzhen Geng , Yang Liu , Shijie Wang

In this paper we construct a framework for doing statistical inference for discretely observed stochastic differential equations (SDEs) where the driving noise has 'memory'. Classical SDE models for inference assume the driving noise to be…

Methodology · Statistics 2013-07-05 Martin Lysy , Natesh S. Pillai

Diffusion models, typically formulated as discretizations of stochastic differential equations (SDEs), have achieved state-of-the-art performance in generative tasks. However, their theoretical analysis often involves complex proofs. In…

Machine Learning · Computer Science 2026-02-02 Juhyeok Choi , Chenglin Fan

This thesis studies high-dimensional, continuous-valued pairwise Markov Random Fields. We are particularly interested in approximating pairwise densities whose logarithm belongs to a Sobolev space. For this problem we propose the method of…

Statistics Theory · Mathematics 2015-06-12 Eric Janofsky

We present high-order numerical schemes for linear stochastic heat and wave equations with Dirichlet boundary conditions, driven by additive noise. Standard Euler schemes for SPDEs are limited to an order convergence between 1/2 and 1 due…

Numerical Analysis · Mathematics 2025-10-28 Abhishek Chaudhary , Andreas Prohl

In this thesis we consider stochastic resonance for a diffusion with drift given by a potential, which has two metastable states and two pathways between them. Depending on the direction of the forcing the height of the two barriers, one…

Probability · Mathematics 2018-03-06 Tommy Liu

We propose \textit{DeepMartingale}, a deep-learning framework for the dual formulation of discrete-monitoring optimal stopping problems under continuous-time models. Leveraging a martingale representation, our method implements a…

Optimization and Control · Mathematics 2026-02-27 Junyan Ye , Hoi Ying Wong