1/2 order convergence rate of Euler-type methods for time-changed stochastic differential equations with super-linearly growing drift and diffusion coefficients

Fuente: arXiv
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Main Authors: Wang, Shuai, Niu, Yuanling, Zhang, Ying
Format: Preprint
Published: 2025
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author Wang, Shuai
Niu, Yuanling
Zhang, Ying
author_facet Wang, Shuai
Niu, Yuanling
Zhang, Ying
contents This paper investigates the strong convergence properties of two Euler-type methods for a class of time-changed stochastic differential equations (TCSDEs) with super-linearly growing drift and diffusion coefficients. Building upon existing research, we propose a backward Euler method (BEM) and introduce its explicit counterpart -- the projected Euler method (PEM). We prove that both methods converge strongly in the $L_2$-sense at the optimal rate of 1/2. This result extends the applicability of both the BEM and the PEM to a broader class of TCSDEs. Moreover, the two methods offer complementary strengths: while BEM possesses wide applicability, PEM is computationally more efficient. Numerical simulations confirm our theoretical findings and illustrate practical performance of both schemes.
format Preprint
id arxiv_https___arxiv_org_abs_2507_14562
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle 1/2 order convergence rate of Euler-type methods for time-changed stochastic differential equations with super-linearly growing drift and diffusion coefficients
Wang, Shuai
Niu, Yuanling
Zhang, Ying
Numerical Analysis
This paper investigates the strong convergence properties of two Euler-type methods for a class of time-changed stochastic differential equations (TCSDEs) with super-linearly growing drift and diffusion coefficients. Building upon existing research, we propose a backward Euler method (BEM) and introduce its explicit counterpart -- the projected Euler method (PEM). We prove that both methods converge strongly in the $L_2$-sense at the optimal rate of 1/2. This result extends the applicability of both the BEM and the PEM to a broader class of TCSDEs. Moreover, the two methods offer complementary strengths: while BEM possesses wide applicability, PEM is computationally more efficient. Numerical simulations confirm our theoretical findings and illustrate practical performance of both schemes.
title 1/2 order convergence rate of Euler-type methods for time-changed stochastic differential equations with super-linearly growing drift and diffusion coefficients
topic Numerical Analysis
url https://arxiv.org/abs/2507.14562