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We study an open problem of risk-sensitive portfolio allocation in a regime-switching credit market with default contagion. The state space of the Markovian regime-switching process is assumed to be a countably infinite set. To characterize…

Portfolio Management · Quantitative Finance 2018-10-25 Lijun Bo , Huafu Liao , Xiang Yu

Fractional diffusion has become a fundamental tool for the modeling of multiscale and heterogeneous phenomena. However, due to its nonlocal nature, its accurate numerical approximation is delicate. We survey our research program on the…

Numerical Analysis · Mathematics 2015-08-19 Ricardo H. Nochetto , Enrique Otarola , Abner J. Salgado

We study the existence and uniqueness of rank-based interacting systems of stochastic differential equations. These systems can be seen as modifications with state-dependent coefficients of the Atlas model in mathematical finance. The…

Probability · Mathematics 2026-01-13 Hélène Guérin , Nathalie Krell

The classical Feynman-Kac identity builds a bridge between stochastic analysis and partial differential equations (PDEs) by providing stochastic representations for classical solutions of linear Kolmogorov PDEs. This opens the door for the…

Probability · Mathematics 2021-10-25 Christian Beck , Martin Hutzenthaler , Arnulf Jentzen

Using a combination of recurrent neural networks and signature methods from the rough paths theory we design efficient algorithms for solving parametric families of path dependent partial differential equations (PPDEs) that arise in pricing…

Computational Finance · Quantitative Finance 2020-11-24 Marc Sabate-Vidales , David Šiška , Lukasz Szpruch

We study the weak solvability of a nonlinearly coupled system of parabolic and pseudo-parabolic equations describing the interplay between mechanics, chemical reactions, diffusion and flow in a mixture theory framework. Our approach relies…

Analysis of PDEs · Mathematics 2017-02-09 Arthur J. Vromans , A. A. F. van de Ven , Adrian Muntean

Using a mixture of classical and probabilistic techniques we investigate the convexity of solutions to the elliptic pde associated with a certain generalized Ornstein-Uhlenbeck process.

Analysis of PDEs · Mathematics 2014-07-16 Jon Warren

We prove the existence of solutions of a cross-diffusion parabolic population problem. The system of partial differential equations is deduced as the limit equations satisfied by the densities corresponding to an interacting particles…

Analysis of PDEs · Mathematics 2024-01-29 Gonzalo Galiano , Virginia Selgas

Parabolic partial differential equations (PDEs) are widely used in the mathematical modeling of natural phenomena and man made complex systems. In particular, parabolic PDEs are a fundamental tool to determine fair prices of financial…

Numerical Analysis · Mathematics 2020-10-05 Martin Hutzenthaler , Arnulf Jentzen , Philippe von Wurstemberger

This work presents a brief discussion and a plan towards the analytical solving of Partial Differential Equations (PDEs) using symbolic computing, as well as an implementation of part of this plan as the PDEtools software-package of…

General Relativity and Quantum Cosmology · Physics 2016-03-23 E. S. Cheb-Terrab , K. von Bulow

In this study, a recursive solution technique in conjunction with generalized integrating factors is presented and applied to address first and second order linear differential equations. This approach demonstrates practical utility in…

Mathematical Physics · Physics 2025-03-03 Everardo Rivera-Oliva

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

In this paper, we investigate the existence and finite-time blow-up for the solution of a reaction-diffusion system of semilinear stochastic partial differential equations (SPDEs) subjected to a two-dimensional fractional Brownian motion…

Analysis of PDEs · Mathematics 2024-05-28 S. Sankar , Manil T. Mohan , S. Karthikeyan

Stochastic differential equations (SDEs) using jump-diffusion processes describe many natural phenomena at the microscopic level. Since they are commonly used to model economic and financial evolutions, the calibration and optimal control…

Optimization and Control · Mathematics 2025-05-08 Jan Bartsch , Alfio Borzi , Gabriele Ciaramella , Jan Reichle

In this paper we propose local and global existence results for the solution of systems characterized by the coupling of ODEs and PDEs. The coexistence of distinct mathematical formalisms represents the main feature of hybrid approaches, in…

Analysis of PDEs · Mathematics 2018-07-10 Marta Menci , Marco Papi

Stochastic partial differential equations (SPDEs) represent a very active research field with numerous recent developments and breakthrough results. There are several well-established approaches and methods used to construct solutions for…

Probability · Mathematics 2019-08-27 Christian Kuehn , Alexandra Neamtu

Parameter estimation for ordinary differential equations (ODEs) plays a fundamental role in the analysis of dynamical systems. Generally lacking closed-form solutions, ODEs are traditionally approximated using deterministic solvers.…

Computation · Statistics 2025-06-30 Mohan Wu , Martin Lysy

We study some systems of interacting fields whose evolution is given by some singular stochastic partial differential equations of mean field type. We provide a robust setting for their study and prove a well-posedness result and a…

Probability · Mathematics 2026-04-15 I. Bailleul , N. Moench

The technique of stochastic solutions, previously used for deterministic equations, is here proposed as a solution method for partial differential equations driven by distribution-valued noises.

Probability · Mathematics 2024-08-22 R. Vilela Mendes

The global existence of classical solutions to reaction-diffusion systems in arbitrary space dimensions is studied. The nonlinearities are assumed to be quasi-positive, to have (slightly super-) quadratic growth, and to possess a mass…

Analysis of PDEs · Mathematics 2019-02-26 Klemens Fellner , Jeff Morgan , Bao Quoc Tang