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In this paper, we propose a class of explicit positivity preserving numerical methods for general stochastic differential equations which have positive solutions. Namely, all the numerical solutions are positive. Under some reasonable…

Numerical Analysis · Mathematics 2021-06-30 Yulian Yi , Yaozhong Hu , Jingjun Zhao

The stochastic logistic model with regime switching is an important model in the ecosystem. While analytic solution to this model is positive, current numerical methods are unable to preserve such boundaries in the approximation. So,…

Numerical Analysis · Mathematics 2021-06-08 Xiaoyue Li , Hongfu Yang

We propose a positivity preserving implicit Euler-Maruyama scheme for a jump-extended Cox-Ingersoll-Ross (CIR) process where the jumps are governed by a compensated spectrally positive $\alpha$-stable process for $\alpha \in (1,2)$.…

Probability · Mathematics 2019-01-25 Libo Li , Dai Taguchi

The present work is devoted to strong approximations of a generalized A\"{i}t-Sahalia model arising from mathematical finance. The numerical study of the considered model faces essential difficulties caused by a drift that blows up at the…

Numerical Analysis · Mathematics 2024-03-26 Ruishu Liu , Yulin Cao , Xiaojie Wang

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

To construct positivity-preserving numerical methods, a vast majority of existing works employ transformation techniques such as the Lamperti transformation or logarithmic transformation. However, using these techniques often leads to the…

Numerical Analysis · Mathematics 2025-08-26 Xingwei Hu , Xinjie Dai , Aiguo Xiao

We consider a class of stochastic path-dependent volatility models where the stochastic volatility, whose square follows the Cox-Ingersoll-Ross model, is multiplied by a (leverage) function of the spot price, its running maximum, and time.…

Computational Finance · Quantitative Finance 2018-10-09 Andrei Cozma , Christoph Reisinger

In this paper, we establish the weak convergence rate of density-dependent stochastic differential equations with bounded drift driven by $\alpha$-stable processes with $\alpha\in(1,2)$. The well-posedness of these equations has been…

Probability · Mathematics 2024-06-03 Ke Song , Zimo Hao

The well-known stochastic SIS model characterized by highly nonlinear in epidemiology has a unique positive solution taking values in a bounded domain with a series of dynamical behaviors. However, the approximation methods to maintain the…

Numerical Analysis · Mathematics 2021-11-02 Hongfu Yang

In this paper, we extend the logarithmic Euler-Maruyama scheme for stochastic delay differential equation in one dimension to the part where we propose a scheme for a system of stochastic delay differential equations. We then show that the…

Numerical Analysis · Mathematics 2021-09-01 Nishant Agrawal , Yaozhong Hu

In this article, we present a method to construct a positivity-preserving numerical scheme for a jump-extended CEV (Constant Elasticity of Variance) process, whose jumps are governed by a spectrally positive $\alpha$-stable process with…

Numerical Analysis · Mathematics 2023-05-05 Libo Li , Guanting Liu

We study the strong approximation of the solutions to singular stochastic kinetic equations (also referred to as second-order SDEs) driven by $\alpha$-stable processes, using an Euler-type scheme inspired by [11]. For these equations, the…

Probability · Mathematics 2025-11-18 Chengcheng Ling

In this paper, we propose two variants of the positivity-preserving schemes, namely the truncated Euler-Maruyama (EM) method and the truncated Milstein scheme, applied to stochastic differential equations (SDEs) with positive solutions and…

Numerical Analysis · Mathematics 2024-10-10 Shounian Deng , Chen Fei , Weiyin Fei , Xuerong Mao

Euler-Maruyama method is studied to approximate stochastic differential equations driven by the symmetric $\alpha$-stable additive noise with the $\beta$ H\"older continuous drift coefficient. When $\alpha \in (1,2)$ and $\beta \in…

Numerical Analysis · Mathematics 2024-12-20 Wei Liu

Motivated by weak convergence results in the paper of Takahashi and Yoshida (2005), we show strong convergence for an accelerated Euler-Maruyama scheme applied to perturbed stochastic differential equations. The Milstein scheme with the…

Computational Finance · Quantitative Finance 2013-12-02 Hideyuki Tanaka , Toshihiro Yamada

In this work, we adapt the {\em micro-macro} methodology to stochastic differential equations for the purpose of numerically solving oscillatory evolution equations. The models we consider are addressed in a wide spectrum of regimes where…

Numerical Analysis · Mathematics 2023-06-09 Ibrahim Almuslimani , Philippe Chartier , Mohammed Lemou , Florian Méhats

This paper is concerned with the numerical approximation of stochastic ordinary differential equations, which satisfy a global monotonicity condition. This condition includes several equations with super-linearly growing drift and diffusion…

Numerical Analysis · Mathematics 2015-10-09 Wolf-Jürgen Beyn , Elena Isaak , Raphael Kruse

This paper presents a general positivity-preserving algorithm for implicit high-order finite volume schemes solving Euler and Navier-Stokes equations. Previous positivity-preserving algorithms are mainly based on mathematical analyses,…

Computational Physics · Physics 2023-06-26 Qian-Min Huang , Yu-Xin Ren , Qian Wang

We consider mean-reverting CIR/CEV processes with delay and jumps used as models on the financial markets. These processes are solutions of stochastic differential equations with jumps, which have no explicit solutions. We prove the…

Numerical Analysis · Mathematics 2019-04-09 Ioannis S Stamatiou

As a combination of the logarithmic transformation with the truncated Euler-Maruyama (TEM) scheme, the positivity-preserving logarithmic truncated Euler-Maruyama (LTEM) scheme has been generally developed for scalar stochastic differential…

Numerical Analysis · Mathematics 2025-11-26 Xingwei Hu , Xinjie Dai , Aiguo Xiao
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