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Splitting Schemes for Backward Stochastic Differential Equations

Splitting Schemes for Backward Stochastic Differential Equations

Year:    2025

Author:    Luying Zheng, Weidong Zhao

International Journal of Numerical Analysis and Modeling, Vol. 22 (2025), Iss. 4 : pp. 585–602

Abstract

This paper concerns splitting methods for solving backward stochastic differential equations (BSDEs). By splitting the original $d$-dimensional BSDE into $d$ BSDEs and approximating these split BSDEs, we propose splitting schemes for the BSDE. The splitting schemes are rigorously analyzed and first-order error estimates are theoretically obtained. Numerical tests are given 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/ijnam2025-1025

International Journal of Numerical Analysis and Modeling, Vol. 22 (2025), Iss. 4 : pp. 585–602

Published online:    2025-01

AMS Subject Headings:    Global Science Press

Copyright:    COPYRIGHT: © Global Science Press

Pages:    18

Keywords:    Backward stochastic differential equations splitting method splitting scheme error estimate.

Author Details

Luying Zheng

Weidong Zhao