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Bibliographic Details
Main Author: Aldridge, Irene
Format: Preprint
Published: 2026
Subjects:
Online Access:https://arxiv.org/abs/2605.02085
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author Aldridge, Irene
author_facet Aldridge, Irene
contents This paper proposes an eigenvalue-based small-sample approximation of the celebrated Markov Chain Monte Carlo that delivers an invariant steady-state distribution that is consistent with traditional Monte Carlo methods. The proposed eigenvalue-based methodology reduces the number of paths required for Monte Carlo from as many as 1,000,000 to as few as 10 (depending on the simulation time horizon $T$), and delivers comparable, distributionally robust results, as measured by the Wasserstein distance. The proposed methodology also produces a significant variance reduction in the steady-state distribution.
format Preprint
id arxiv_https___arxiv_org_abs_2605_02085
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle Fast Monte-Carlo
Aldridge, Irene
Econometrics
Data Structures and Algorithms
Statistics Theory
Pricing of Securities
Risk Management
I.6
This paper proposes an eigenvalue-based small-sample approximation of the celebrated Markov Chain Monte Carlo that delivers an invariant steady-state distribution that is consistent with traditional Monte Carlo methods. The proposed eigenvalue-based methodology reduces the number of paths required for Monte Carlo from as many as 1,000,000 to as few as 10 (depending on the simulation time horizon $T$), and delivers comparable, distributionally robust results, as measured by the Wasserstein distance. The proposed methodology also produces a significant variance reduction in the steady-state distribution.
title Fast Monte-Carlo
topic Econometrics
Data Structures and Algorithms
Statistics Theory
Pricing of Securities
Risk Management
I.6
url https://arxiv.org/abs/2605.02085