Two-Step Scheme for Backward Stochastic Differential Equations

Two-Step Scheme for Backward Stochastic Differential Equations

Year:    2023

Author:    Qiang Han, Shaolin Ji

Journal of Computational Mathematics, Vol. 41 (2023), Iss. 2 : pp. 287–304

Abstract

In this paper, a stochastic linear two-step scheme has been presented to approximate backward stochastic differential equations (BSDEs). A necessary and sufficient condition is given to judge the $\mathbb{L}_2$-stability of our numerical schemes. This stochastic linear two-step method possesses a family of $3$-order convergence schemes in the sense of strong stability. The coefficients in the numerical methods are inferred based on the constraints of strong stability and $n$-order accuracy ($n\in\mathbb{N}^+$). Numerical experiments illustrate that the scheme is an efficient probabilistic numerical method.

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Journal Article Details

Publisher Name:    Global Science Press

Language:    English

DOI:    https://doi.org/10.4208/jcm.2112-m2019-0289

Journal of Computational Mathematics, Vol. 41 (2023), Iss. 2 : pp. 287–304

Published online:    2023-01

AMS Subject Headings:   

Copyright:    COPYRIGHT: © Global Science Press

Pages:    18

Keywords:    Backward stochastic differential equation Stochastic linear two-step scheme Local truncation error Stability and convergence.

Author Details

Qiang Han

Shaolin Ji

  1. Novel multi-step predictor–corrector schemes for backward stochastic differential equations

    Han, Qiang

    Ji, Shaolin

    Communications in Nonlinear Science and Numerical Simulation, Vol. 139 (2024), Iss. P.108269

    https://doi.org/10.1016/j.cnsns.2024.108269 [Citations: 0]