Numerical analysis of a time discretized method for nonlinear filtering problem with Lévy process observations

Author:

Zhang Fengshan,Zou Yongkui,Chai Shimin,Cao YanzhaoORCID

Abstract

AbstractIn this paper, we consider a nonlinear filtering model with observations driven by correlated Wiener processes and point processes. We first derive a Zakai equation whose solution is an unnormalized probability density function of the filter solution. Then, we apply a splitting-up technique to decompose the Zakai equation into three stochastic differential equations, based on which we construct a splitting-up approximate solution and prove its half-order convergence. Furthermore, we apply a finite difference method to construct a time semi-discrete approximate solution to the splitting-up system and prove its half-order convergence to the exact solution of the Zakai equation. Finally, we present some numerical experiments to demonstrate the theoretical analysis.

Funder

Natural Science Foundation of China

The research was partly supported by the National Key R &D Program

Jilin Provincial Department of science and technology

Publisher

Springer Science and Business Media LLC

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