Finite variance unbiased estimation of stochastic differential equations

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Abstract

We develop a new unbiased estimation method for Lipschitz continuous functions of multi-dimensional stochastic differential equations with Lipschitz continuous coefficients. This method provides a finite variance estimator based on a probabilistic representation which is similar to the recent representations obtained through the parametrix method and recursive application of the automatic differentiation formula. Our approach relies on appropriate change of variables to carefully handle the singular integrands appearing in the iterated integrals of the probabilistic representation. It results in a scheme with randomized intermediate times where the number of intermediate times has a Pareto distribution.

Original languageEnglish
Title of host publication2017 Winter Simulation Conference, WSC 2017
EditorsVictor Chan
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages1950-1961
Number of pages12
ISBN (Electronic)9781538634288
DOIs
Publication statusPublished - 28 Jun 2017
Event2017 Winter Simulation Conference, WSC 2017 - Las Vegas, United States
Duration: 3 Dec 20176 Dec 2017

Publication series

NameProceedings - Winter Simulation Conference
ISSN (Print)0891-7736

Conference

Conference2017 Winter Simulation Conference, WSC 2017
Country/TerritoryUnited States
CityLas Vegas
Period3/12/176/12/17

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