A multilevel Monte Carlo algorithm for SDEs driven by countably dimensional Wiener process and Poisson random measure

Fuente: arXiv
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Main Author: Sobieraj, Michał
Format: Preprint
Published: 2023
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author Sobieraj, Michał
author_facet Sobieraj, Michał
contents In this paper, we investigate the properties of standard and multilevel Monte Carlo methods for weak approximation of solutions of stochastic differential equations (SDEs) driven by the infinite-dimensional Wiener process and Poisson random measure with Lipschitz payoff function. The error of the truncated dimension randomized numerical scheme, which is determined by two parameters, i.e grid density $n \in \mathbb{N}_{+}$ and truncation dimension parameter $M \in \mathbb{N}_{+},$ is of the order $n^{-1/2}+δ(M)$ such that $δ(\cdot)$ is positive and decreasing to $0$. We derive complexity model and provide proof for the upper complexity bound of the multilevel Monte Carlo method which depends on two increasing sequences of parameters for both $n$ and $M.$ The complexity is measured in terms of upper bound for mean-squared error and compared with the complexity of the standard Monte Carlo algorithm. The results from numerical experiments as well as Python and CUDA C implementation are also reported.
format Preprint
id arxiv_https___arxiv_org_abs_2307_16640
institution arXiv
publishDate 2023
record_format arxiv
spellingShingle A multilevel Monte Carlo algorithm for SDEs driven by countably dimensional Wiener process and Poisson random measure
Sobieraj, Michał
Numerical Analysis
Probability
65C05, 65C30, 68Q25
In this paper, we investigate the properties of standard and multilevel Monte Carlo methods for weak approximation of solutions of stochastic differential equations (SDEs) driven by the infinite-dimensional Wiener process and Poisson random measure with Lipschitz payoff function. The error of the truncated dimension randomized numerical scheme, which is determined by two parameters, i.e grid density $n \in \mathbb{N}_{+}$ and truncation dimension parameter $M \in \mathbb{N}_{+},$ is of the order $n^{-1/2}+δ(M)$ such that $δ(\cdot)$ is positive and decreasing to $0$. We derive complexity model and provide proof for the upper complexity bound of the multilevel Monte Carlo method which depends on two increasing sequences of parameters for both $n$ and $M.$ The complexity is measured in terms of upper bound for mean-squared error and compared with the complexity of the standard Monte Carlo algorithm. The results from numerical experiments as well as Python and CUDA C implementation are also reported.
title A multilevel Monte Carlo algorithm for SDEs driven by countably dimensional Wiener process and Poisson random measure
topic Numerical Analysis
Probability
65C05, 65C30, 68Q25
url https://arxiv.org/abs/2307.16640