Strong convergence rate of positivity-preserving truncated Euler--Maruyama method for multi-dimensional stochastic differential equations with positive solutions

Fuente: arXiv
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Main Authors: Hu, Xingwei, Dai, Xinjie, Xiao, Aiguo
Format: Preprint
Published: 2024
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author Hu, Xingwei
Dai, Xinjie
Xiao, Aiguo
author_facet Hu, Xingwei
Dai, Xinjie
Xiao, Aiguo
contents To construct positivity-preserving numerical methods, a vast majority of existing works employ transformation techniques such as the Lamperti transformation or logarithmic transformation. However, using these techniques often leads to the transformed stochastic differential equations (SDEs) not meeting the global monotonicity condition, particularly in multi-dimension case. This condition is essential for achieving strong convergence rates of numerical schemes. A pertinent question arises from this issue regarding the existence of an effective method with a convergence rate for solving multi-dimensional SDEs with positive solutions. This paper presents a positivity-preserving method that combines a novel truncated mapping with a truncated Euler--Maruyama discretization. We investigate both the strong convergence of the numerical method under some reasonable conditions. Furthermore, we demonstrate that this method achieves the optimal strong convergence order of 1/2 under certain additional assumptions. Numerical experiments are conducted to validate these theoretical results and demonstrate the positivity of the numerical solutions.
format Preprint
id arxiv_https___arxiv_org_abs_2412_20988
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Strong convergence rate of positivity-preserving truncated Euler--Maruyama method for multi-dimensional stochastic differential equations with positive solutions
Hu, Xingwei
Dai, Xinjie
Xiao, Aiguo
Numerical Analysis
To construct positivity-preserving numerical methods, a vast majority of existing works employ transformation techniques such as the Lamperti transformation or logarithmic transformation. However, using these techniques often leads to the transformed stochastic differential equations (SDEs) not meeting the global monotonicity condition, particularly in multi-dimension case. This condition is essential for achieving strong convergence rates of numerical schemes. A pertinent question arises from this issue regarding the existence of an effective method with a convergence rate for solving multi-dimensional SDEs with positive solutions. This paper presents a positivity-preserving method that combines a novel truncated mapping with a truncated Euler--Maruyama discretization. We investigate both the strong convergence of the numerical method under some reasonable conditions. Furthermore, we demonstrate that this method achieves the optimal strong convergence order of 1/2 under certain additional assumptions. Numerical experiments are conducted to validate these theoretical results and demonstrate the positivity of the numerical solutions.
title Strong convergence rate of positivity-preserving truncated Euler--Maruyama method for multi-dimensional stochastic differential equations with positive solutions
topic Numerical Analysis
url https://arxiv.org/abs/2412.20988