New Second-Order Schemes for Forward Backward Stochastic Differential Equations

New Second-Order Schemes for Forward Backward Stochastic Differential Equations

Year:    2018

East Asian Journal on Applied Mathematics, Vol. 8 (2018), Iss. 3 : pp. 399–421

Abstract

The Feynman-Kac formulas are used to develop new second-order numerical schemes for the forward-backward stochastic differential equations (FBSDEs) of the first and second order. The methods are simple and allow an easy implementation. Numerous numerical tests for FBSDEs, fully nonlinear second-order parabolic partial differential equations and the Hamilton-Jacobi-Bellman equations show the stability and a high accuracy of the methods.

You do not have full access to this article.

Already a Subscriber? Sign in as an individual or via your institution

Journal Article Details

Publisher Name:    Global Science Press

Language:    English

DOI:    https://doi.org/10.4208/eajam.100118.070318

East Asian Journal on Applied Mathematics, Vol. 8 (2018), Iss. 3 : pp. 399–421

Published online:    2018-01

AMS Subject Headings:   

Copyright:    COPYRIGHT: © Global Science Press

Pages:    23

Keywords:    Forward backward stochastic differential equations Feynman-Kac formula difference approximation second-order scheme.

  1. Stability analysis of general multistep methods for Markovian backward stochastic differential equations

    Tang, Xiao | Xiong, Jie

    IMA Journal of Numerical Analysis, Vol. 42 (2022), Iss. 2 P.1789

    https://doi.org/10.1093/imanum/drab023 [Citations: 2]
  2. High order one-step methods for backward stochastic differential equations via Itô-Taylor expansion

    Zhou, Quan | Sun, Yabing

    Discrete and Continuous Dynamical Systems - B, Vol. 27 (2022), Iss. 8 P.4387

    https://doi.org/10.3934/dcdsb.2021233 [Citations: 2]
  3. An explicit second-order numerical scheme for mean-field forward backward stochastic differential equations

    Sun, Yabing | Zhao, Weidong

    Numerical Algorithms, Vol. 84 (2020), Iss. 1 P.253

    https://doi.org/10.1007/s11075-019-00754-2 [Citations: 4]
  4. A multi-step scheme based on cubic spline for solving backward stochastic differential equations

    Teng, Long | Lapitckii, Aleksandr | Günther, Michael

    Applied Numerical Mathematics, Vol. 150 (2020), Iss. P.117

    https://doi.org/10.1016/j.apnum.2019.09.016 [Citations: 11]
  5. Physics-informed generator-encoder adversarial networks with latent space matching for stochastic differential equations

    Gao, Ruisong | Yang, Min | Zhang, Jin

    Journal of Computational Science, Vol. 79 (2024), Iss. P.102318

    https://doi.org/10.1016/j.jocs.2024.102318 [Citations: 0]
  6. A novel convolutional neural network with multiscale cascade midpoint residual for fault diagnosis of rolling bearings

    Chao, Zhiqiang | Han, Tian

    Neurocomputing, Vol. 506 (2022), Iss. P.213

    https://doi.org/10.1016/j.neucom.2022.07.022 [Citations: 21]
  7. A regression-based Monte Carlo method to solve two-dimensional forward backward stochastic differential equations

    Li, Xiaofei | Wu, Yi | Zhu, Quanxin | Hu, Songbo | Qin, Chuan

    Advances in Difference Equations, Vol. 2021 (2021), Iss. 1

    https://doi.org/10.1186/s13662-021-03361-5 [Citations: 2]