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An explicit Euler method for McKean-Vlasov SDEs driven by fractional Brownian motion

2022/09/10 by Jie He, He, Jie, Shuaibin Gao +5
Economics, Econometrics and Finance · Engineering · #Stochastic processes and financial applications #Financial Markets and Investment Strategies #Fluid Dynamics and Turbulent Flows

paper · pdf · doi:10.48550/arxiv.2209.04574

Abstract

In this paper, we establish the theory of chaos propagation and propose an Euler-Maruyama scheme for McKean-Vlasov stochastic differential equations driven by fractional Brownian motion with Hurst exponent H ∈ (0,1). Meanwhile, upper bounds for errors in the Euler method is obtained. A numerical example is demonstrated to verify the theoretical results.

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