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A New Second Order Numerical Scheme for Solving Decoupled Mean-Field FBSDEs with Jumps

A New Second Order Numerical Scheme for Solving Decoupled Mean-Field FBSDEs with Jumps

Year:    2025

Author:    Yabing Sun, Weidong Zhao

Journal of Computational Mathematics, Vol. 43 (2025), Iss. 1 : pp. 229–256

Abstract

In this paper, we consider the numerical solution of decoupled mean-field forward backward stochastic differential equations with jumps (MFBSDEJs). By using finite difference approximations and the Gaussian quadrature rule, and the weak order 2.0 Itô-Taylor scheme to solve the forward mean-field SDEs with jumps, we propose a new second order scheme for MFBSDEJs. The proposed scheme allows an easy implementation. Some numerical experiments are carried out to demonstrate the stability, the effectiveness and the second order accuracy of the scheme.

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Journal Article Details

Publisher Name:    Global Science Press

Language:    English

DOI:    https://doi.org/10.4208/jcm.2310-m2023-0089

Journal of Computational Mathematics, Vol. 43 (2025), Iss. 1 : pp. 229–256

Published online:    2025-01

AMS Subject Headings:   

Copyright:    COPYRIGHT: © Global Science Press

Pages:    28

Keywords:    Mean-field forward backward stochastic differential equation with jumps Finite difference approximation Gaussian quadrature rule Second order.

Author Details

Yabing Sun

Weidong Zhao