Discrete-time approximations of stochastic delay equations: The Milstein scheme
Hu, Yaozhong ; Mohammed, Salah-Eldin A. ; Yan, Feng
Ann. Probab., Tome 32 (2004) no. 1A, p. 265-314 / Harvested from Project Euclid
In this paper, we develop a strong Milstein approximation scheme for solving stochastic delay differential equations (SDDEs). The scheme has convergence order 1. In order to establish the scheme, we prove an infinite-dimensional Itô formula for "tame'' functions acting on the segment process of the solution of an SDDE. It is interesting to note that the presence of the memory in the SDDE requires the use of the Malliavin calculus and the anticipating stochastic analysis of Nualart and Pardoux. Given the nonanticipating nature of the SDDE, the use of anticipating calculus methods in the context of strong approximation schemes appears to be novel.
Publié le : 2004-01-14
Classification:  Milstein scheme,  Itô's formula,  tame functions,  anticipating calculus,  Malliavin calculus,  weak derivatives,  34K50,  60H07,  60H35,  60C30,  60H10,  37H10,  34K28
@article{1078415836,
     author = {Hu, Yaozhong and Mohammed, Salah-Eldin A. and Yan, Feng},
     title = {Discrete-time approximations of stochastic delay equations: The Milstein scheme},
     journal = {Ann. Probab.},
     volume = {32},
     number = {1A},
     year = {2004},
     pages = { 265-314},
     language = {en},
     url = {http://dml.mathdoc.fr/item/1078415836}
}
Hu, Yaozhong; Mohammed, Salah-Eldin A.; Yan, Feng. Discrete-time approximations of stochastic delay equations: The Milstein scheme. Ann. Probab., Tome 32 (2004) no. 1A, pp.  265-314. http://gdmltest.u-ga.fr/item/1078415836/