Discretization of Jump Stochastic Differential Equations in Terms of Multiple Stochastic Integrals

Discretization of Jump Stochastic Differential Equations in Terms of Multiple Stochastic Integrals

Year:    1998

Author:    Chunwah Li, Shengchang Wu, Xiaoqing Liu

Journal of Computational Mathematics, Vol. 16 (1998), Iss. 4 : pp. 375–384

Abstract

In the Stratonovich-Taylor and Stratonovich-Taylor-Hall discretization schemes for stochastic differential equations (SDEs), there appear two types of multiple stochastic integrals respectively. The present work is to approximate these multiple stochastic integrals by converting them into systems of simple SDEs and solving the systems by lower order numerical schemes. The reliability of this approach is clarified in theory and demonstrated in numerical examples. In consequence, the results are applied to the strong discretization of both continuous and jump SDEs.

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Journal Article Details

Publisher Name:    Global Science Press

Language:    English

DOI:    https://doi.org/1998-JCM-9168

Journal of Computational Mathematics, Vol. 16 (1998), Iss. 4 : pp. 375–384

Published online:    1998-01

AMS Subject Headings:   

Copyright:    COPYRIGHT: © Global Science Press

Pages:    10

Keywords:    Brownian motion Poisson process stochastic differential equation multiple stochastic integral strong discretization.

Author Details

Chunwah Li

Shengchang Wu

Xiaoqing Liu