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Volume 15, Issue 3
Convergence and Stability of an Explicit Method for Autonomous Time-Changed Stochastic Differential Equations with Super-Linear Coefficients

Xiaotong Li, Juan Liao, Wei Liu & Zhuo Xing

Adv. Appl. Math. Mech., 15 (2023), pp. 651-683.

Published online: 2023-02

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  • Abstract

In this paper, numerical methods for the time-changed stochastic differential equations of the form $$d\Upsilon(t)=a(\Upsilon(t))dt+b(\Upsilon(t))dE(t)+\sigma(\Upsilon(t))dB(E(t))$$ are investigated, where all the coefficients $a(·),$ $b(·)$ and $\sigma(·)$ are allowed to contain some super-linearly growing terms. An explicit method is proposed by using the idea of truncating terms that grow too fast. Strong convergence in the finite time of the proposed method is proved and the convergence rate is obtained. The proposed method is also proved to be able to reproduce the asymptotic stability of the underlying equation in the almost sure sense. Simulations are provided to demonstrate the theoretical results.

  • AMS Subject Headings

60H10, 65C30, 60J60

  • Copyright

COPYRIGHT: © Global Science Press

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@Article{AAMM-15-651, author = {Li , XiaotongLiao , JuanLiu , Wei and Xing , Zhuo}, title = {Convergence and Stability of an Explicit Method for Autonomous Time-Changed Stochastic Differential Equations with Super-Linear Coefficients}, journal = {Advances in Applied Mathematics and Mechanics}, year = {2023}, volume = {15}, number = {3}, pages = {651--683}, abstract = {

In this paper, numerical methods for the time-changed stochastic differential equations of the form $$d\Upsilon(t)=a(\Upsilon(t))dt+b(\Upsilon(t))dE(t)+\sigma(\Upsilon(t))dB(E(t))$$ are investigated, where all the coefficients $a(·),$ $b(·)$ and $\sigma(·)$ are allowed to contain some super-linearly growing terms. An explicit method is proposed by using the idea of truncating terms that grow too fast. Strong convergence in the finite time of the proposed method is proved and the convergence rate is obtained. The proposed method is also proved to be able to reproduce the asymptotic stability of the underlying equation in the almost sure sense. Simulations are provided to demonstrate the theoretical results.

}, issn = {2075-1354}, doi = {https://doi.org/10.4208/aamm.OA-2021-0335}, url = {http://global-sci.org/intro/article_detail/aamm/21445.html} }
TY - JOUR T1 - Convergence and Stability of an Explicit Method for Autonomous Time-Changed Stochastic Differential Equations with Super-Linear Coefficients AU - Li , Xiaotong AU - Liao , Juan AU - Liu , Wei AU - Xing , Zhuo JO - Advances in Applied Mathematics and Mechanics VL - 3 SP - 651 EP - 683 PY - 2023 DA - 2023/02 SN - 15 DO - http://doi.org/10.4208/aamm.OA-2021-0335 UR - https://global-sci.org/intro/article_detail/aamm/21445.html KW - Time-changed stochastic differential equations, explicit method, super-linear coefficients, strong convergence, asymptotic stability. AB -

In this paper, numerical methods for the time-changed stochastic differential equations of the form $$d\Upsilon(t)=a(\Upsilon(t))dt+b(\Upsilon(t))dE(t)+\sigma(\Upsilon(t))dB(E(t))$$ are investigated, where all the coefficients $a(·),$ $b(·)$ and $\sigma(·)$ are allowed to contain some super-linearly growing terms. An explicit method is proposed by using the idea of truncating terms that grow too fast. Strong convergence in the finite time of the proposed method is proved and the convergence rate is obtained. The proposed method is also proved to be able to reproduce the asymptotic stability of the underlying equation in the almost sure sense. Simulations are provided to demonstrate the theoretical results.

Li , XiaotongLiao , JuanLiu , Wei and Xing , Zhuo. (2023). Convergence and Stability of an Explicit Method for Autonomous Time-Changed Stochastic Differential Equations with Super-Linear Coefficients. Advances in Applied Mathematics and Mechanics. 15 (3). 651-683. doi:10.4208/aamm.OA-2021-0335
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