Finite element approximations for second-order stochastic differential equation driven by fractional Brownian motion

Yanzhao Cao, Jialin Hong, Zhihui Liu*

*Corresponding author for this work

Research output: Contribution to journalJournal Articlepeer-review

Abstract

We consider finite element approximations for a one-dimensional second-order stochastic differential equation of boundary value type driven by a fractional Brownian motion with Hurst index H ≤ 1/2. We make use of a sequence of approximate solutions with the fractional noise replaced by its piecewise constant approximations to construct the finite element approximations for the equation. The error estimate of the approximations is derived through rigorous convergence analysis.

Original languageEnglish
Pages (from-to)184-197
Number of pages14
JournalIMA Journal of Numerical Analysis
Volume38
Issue number1
DOIs
Publication statusPublished - 25 Jan 2018
Externally publishedYes

Bibliographical note

Publisher Copyright:
© The authors 2017. Published by Oxford University Press on behalf of the Institute of Mathematics and its Applications. All rights reserved.

Keywords

  • Finite element approximation
  • Fractional Brownian motion
  • Piecewise constant approximation
  • Stochastic differential equation of boundary value type

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