An Accurate Numerical Scheme for Mean-Field Forward and Backward SDEs with Jumps

An Accurate Numerical Scheme for Mean-Field Forward and Backward SDEs with Jumps

Year:    2024

Author:    Yabing Sun, Jie Yang, Weidong Zhao

Numerical Mathematics: Theory, Methods and Applications, Vol. 17 (2024), Iss. 1 : pp. 243–274

Abstract

In this work, we propose an explicit second order scheme for decoupled mean-field forward backward stochastic differential equations with jumps. The stability and the rigorous error estimates are presented, which show that the proposed scheme yields a second order rate of convergence, when the forward mean-field stochastic differential equation is solved by the weak order 2.0 Itô-Taylor scheme. Numerical experiments are carried out to verify the theoretical results.

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Journal Article Details

Publisher Name:    Global Science Press

Language:    English

DOI:    https://doi.org/10.4208/nmtma.OA-2023-0048

Numerical Mathematics: Theory, Methods and Applications, Vol. 17 (2024), Iss. 1 : pp. 243–274

Published online:    2024-01

AMS Subject Headings:   

Copyright:    COPYRIGHT: © Global Science Press

Pages:    32

Keywords:    Mean-field forward backward stochastic differential equation with jumps stability analysis error estimates.

Author Details

Yabing Sun

Jie Yang

Weidong Zhao

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