New Simplified High-Order Schemes for Solving SDEs with Markovian Switching Driven by Pure Jumps

Author:

Li Yang1ORCID,Xu Yingmei1,Xu Qianhai1,Zhang Yu1

Affiliation:

1. College of Science, University of Shanghai for Science and Technology, Shanghai 200093, China

Abstract

New high-order weak schemes are proposed and simplified to solve stochastic differential equations with Markovian switching driven by pure jumps (PJ-SDEwMs). Using Malliavin calculus theory, it is rigorously proven that the new numerical schemes can achieve a high-order convergence rate. Some numerical experiments are provided to show the efficiency and accuracy.

Publisher

MDPI AG

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