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A Numerical Method for SDEs with Discontinuous Drift

In this paper we introduce a transformation technique, which can on the one hand be used to prove existence and uniqueness for a class of SDEs with discontinuous drift coefficient. One the other hand we present a numerical method based on transforming the Euler-Maruyama scheme for such a class of SDEs. We prove convergence of order $1/2$. Finally, we present numerical examples.

preprint2015arXivOpen access
Gunther LeobacherMichaela Szölgyenyi
math.PR
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Open access2 authors1 topic
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Gunther LeobacherMichaela Szölgyenyi

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