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An implicit Euler--Maruyama method with non-uniform step-size applied to a class of stochastic partial differential equations is studied. A spectral method is used for the spatial discretization and the truncation of the Wiener process. A…

Numerical Analysis · Mathematics 2018-04-11 Yoshihito Kazashi

We analyse a Monte Carlo particle method for the simulation of the calibrated Heston-type local stochastic volatility (H-LSV) model. The common application of a kernel estimator for a conditional expectation in the calibration condition…

Computational Finance · Quantitative Finance 2025-04-22 Christoph Reisinger , Maria Olympia Tsianni

In this paper, we analyze the drift-implicit (or backward) Euler numerical scheme for a class of stochastic differential equations with unbounded drift driven by an arbitrary $\lambda$-H\"older continuous process, $\lambda\in(0,1)$. We…

Probability · Mathematics 2022-04-20 Giulia Di Nunno , Yuliya Mishura , Anton Yurchenko-Tytarenko

We study the strong rate of convergence of the Euler--Maruyama scheme for a multidimensional stochastic differential equation (SDE) $$ dX_t = b(X_t) \, dt + dL_t, $$ with irregular $\beta$-H\"older drift, $\beta > 0$, driven by a L\'evy…

Probability · Mathematics 2024-01-12 Oleg Butkovsky , Konstantinos Dareiotis , Máté Gerencsér

In this paper numerical methods for solving stochastic differential equations with Markovian switching (SDEwMSs) are developed by pathwise approximation. The proposed family of strong predictor-corrector Euler-Maruyama methods is designed…

Numerical Analysis · Mathematics 2011-03-08 Jun Ye , Haibo Li , Lili Xiao

In this paper the numerical approximation of stochastic differential equations satisfying a global monotonicity condition is studied. The strong rate of convergence with respect to the mean square norm is determined to be $\frac{1}{2}$ for…

Numerical Analysis · Mathematics 2017-09-01 Adam Andersson , Raphael Kruse

Exponential integrability properties of numerical approximations are a key tool for establishing positive rates of strong and numerically weak convergence for a large class of nonlinear stochastic differential equations. It turns out that…

Numerical Analysis · Mathematics 2020-08-10 Martin Hutzenthaler , Arnulf Jentzen , Xiaojie Wang

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

This paper develops a family of fast, structure-preserving numerical algorithms for the nonlinear Maxwell-Ampere Nernst-Planck equations. For the first-order scheme, the Slotboom transformation rewrites the Nernst-Planck equation to enable…

Numerical Analysis · Mathematics 2026-04-10 Haoran Sun , Wancheng Wu , Kun Wang

We study the stochastic Leray-{\alpha} model of Euler equations with transport noise. We first use weak convergence approach to show the large deviations of the stochastic Leray-{\alpha} model of Euler equations in a suitable scaling limit.…

Analysis of PDEs · Mathematics 2023-05-09 Yong Chen , Yuanyuan Gong

This article present a continuous cascade model of volatility formulated as a stochastic differential equation. Two independent Brownian motions are introduced as random sources triggering the volatility cascade. One multiplicatively…

Statistical Finance · Quantitative Finance 2020-10-26 Jun-ichi Maskawa , Koji Kuroda

We present and analyze finite difference numerical schemes for the Allen Cahn/Cahn-Hilliard equation with a logarithmic Flory Huggins energy potential. Both the first order and second order accurate temporal algorithms are considered. In…

Numerical Analysis · Mathematics 2019-02-12 Wenbin Chen , Cheng Wang , Xiaoming Wang , Steven M. Wise

For $\alpha\in (0,1)$, we consider stochastic differential equations driven by one-sided stable processes of order $\alpha$: \[dX_t= \phi(X_{t-})\ dZ_t.\] We prove that pathwise uniqueness holds for this equation under the assumptions that…

Probability · Mathematics 2013-05-24 Hua Ren

This paper establishes a discretization scheme for a large class of stochastic differential equations driven by a time-changed Brownian motion with drift, where the time change is given by a general inverse subordinator. The scheme involves…

Probability · Mathematics 2015-11-13 Ernest Jum , Kei Kobayashi

In this paper we propose an explicit and positivity preserving scheme for the mean reverting CEV model which converges in the mean square sense with convergence order $a(a-1/2)$.

Numerical Analysis · Mathematics 2015-01-20 Nikolaos Halidias

We propose two Euler-Maruyama (EM) type numerical schemes in order to approximate the invariant measure of a stochastic differential equation (SDE) driven by an $\alpha$-stable L\'evy process ($1<\alpha<2$): an approximation scheme with the…

Probability · Mathematics 2023-06-21 Peng Chen , Changsong Deng , Rene Schilling , Lihu Xu

Stable distributions are a celebrated class of probability laws used in various fields. The $\alpha$-stable process, and its exponentially tempered counterpart, the Classical Tempered Stable (CTS) process, are also prominent examples of…

Probability · Mathematics 2024-12-10 Taher Jalal

In this paper, we are interested in constructing a scheme solving compressible Navier--Stokes equations, with desired properties including high order spatial accuracy, conservation, and positivity-preserving of density and internal energy…

Numerical Analysis · Mathematics 2023-09-13 Chen Liu , Xiangxiong Zhang

This paper focuses on the numerical scheme for multiple-delay stochastic differential equations with partially H\"older continuous drifts and locally H\"older continuous diffusion coefficients. To handle with the superlinear terms in…

Numerical Analysis · Mathematics 2024-03-19 Zhuoqi Liu , Zhaohang Wang , Siying Sun , Shuaibin Gao

In this paper, we examine the performance of randomised Euler-Maruyama (EM) method for additive time-inhomogeneous SDEs with an irregular drift driven by symmetric $\alpha$-table process, $\alpha\in (1,2)$. In particular, the drift is…

Probability · Mathematics 2025-07-16 Jianhai Bao , Haitao Wang , Yue Wu , Danqi Zhuang