Numerical Solutions of Stochastic Differential Delay Equations with Jumps

Numerical Solutions of Stochastic Differential Delay Equations with Jumps

Year:    2009

International Journal of Numerical Analysis and Modeling, Vol. 6 (2009), Iss. 4 : pp. 659–679

Abstract

In this paper, the semi-implicit Euler (SIE) method for the stochastic differential delay equations with Poisson jump and Markov switching (SDDEwPJMSs) is developed. We show that under global Lipschitz assumptions the numerical method is convergent and SDDEwPJMSs is exponentially stable in mean-square if and only if for some sufficiently small step-size $\Delta$ the SIE method is exponentially stable in mean-square. We then replace the global Lipschitz conditions with local Lipschitz conditions and the assumptions that the exact and numerical solution have a bounded $p$th moment for some $p > 2$ and give the convergence result.

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Journal Article Details

Publisher Name:    Global Science Press

Language:    English

DOI:    https://doi.org/2009-IJNAM-790

International Journal of Numerical Analysis and Modeling, Vol. 6 (2009), Iss. 4 : pp. 659–679

Published online:    2009-01

AMS Subject Headings:    Global Science Press

Copyright:    COPYRIGHT: © Global Science Press

Pages:    21

Keywords:    Poisson jump Lipschitz condition semi-implicit Euler method exponential stability convergence.