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Autore principale: Giles, Michael B.
Natura: Preprint
Pubblicazione: 2024
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Accesso online:https://arxiv.org/abs/2411.15930
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author Giles, Michael B.
author_facet Giles, Michael B.
contents It is well known that the Euler-Maruyama discretisation of an autonomous SDE using a uniform timestep $h$ has a strong convergence error which is $O(h^{1/2})$ when the drift and diffusion are both globally Lipschitz. This note proves that the same is true for the approximation of the path sensitivity to changes in a parameter affecting the drift and diffusion, assuming the appropriate number of derivatives exist and are bounded. This seems to fill a gap in the existing stochastic numerical analysis literature.
format Preprint
id arxiv_https___arxiv_org_abs_2411_15930
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Strong convergence of path sensitivities
Giles, Michael B.
Numerical Analysis
65C05, 65C30
It is well known that the Euler-Maruyama discretisation of an autonomous SDE using a uniform timestep $h$ has a strong convergence error which is $O(h^{1/2})$ when the drift and diffusion are both globally Lipschitz. This note proves that the same is true for the approximation of the path sensitivity to changes in a parameter affecting the drift and diffusion, assuming the appropriate number of derivatives exist and are bounded. This seems to fill a gap in the existing stochastic numerical analysis literature.
title Strong convergence of path sensitivities
topic Numerical Analysis
65C05, 65C30
url https://arxiv.org/abs/2411.15930