IDEAS home Printed from https://ideas.repec.org/a/eee/matcom/v201y2022icp343-361.html
   My bibliography  Save this article

Hopf bifurcation of a financial dynamical system with delay

Author

Listed:
  • Çalış, Yasemin
  • Demirci, Ali
  • Özemir, Cihangir

Abstract

The aim of this work is to investigate the qualitative behaviour of a financial dynamical system which contains a time delay. We investigate the dynamic response of this system of which variables are interest rate, investment demand, price index and average profit margin. As a plus to the available literature, the model investigated takes into account a timed delayed feedback in the investment demand. We perform a stability analysis at the fixed points and show that the system undergoes a Hopf bifurcation using well-known methods of stability analyses for delayed systems. The bifurcation analyses are supported by numerical simulations. The analysis reveals that for a set of parameters for which the non-delayed system is stable, a delay in the investment demand may drive the system to instability.

Suggested Citation

  • Çalış, Yasemin & Demirci, Ali & Özemir, Cihangir, 2022. "Hopf bifurcation of a financial dynamical system with delay," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 201(C), pages 343-361.
    • Handle: RePEc:eee:matcom:v:201:y:2022:i:c:p:343-361
    DOI: 10.1016/j.matcom.2022.05.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S037847542200180X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.matcom.2022.05.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Son, Woo-Sik & Park, Young-Jai, 2011. "Delayed feedback on the dynamical model of a financial system," Chaos, Solitons & Fractals, Elsevier, vol. 44(4), pages 208-217.
    2. Chen, Wei-Ching, 2008. "Nonlinear dynamics and chaos in a fractional-order financial system," Chaos, Solitons & Fractals, Elsevier, vol. 36(5), pages 1305-1314.
    3. Ding, Yuting & Jiang, Weihua & Wang, Hongbin, 2012. "Hopf-pitchfork bifurcation and periodic phenomena in nonlinear financial system with delay," Chaos, Solitons & Fractals, Elsevier, vol. 45(8), pages 1048-1057.
    4. Huang, Chengdai & Cai, Liming & Cao, Jinde, 2018. "Linear control for synchronization of a fractional-order time-delayed chaotic financial system," Chaos, Solitons & Fractals, Elsevier, vol. 113(C), pages 326-332.
    5. Xuebing Zhang & Honglan Zhu, 2019. "Hopf Bifurcation and Chaos of a Delayed Finance System," Complexity, Hindawi, vol. 2019, pages 1-18, January.
    6. Chen, Wei-Ching, 2008. "Dynamics and control of a financial system with time-delayed feedbacks," Chaos, Solitons & Fractals, Elsevier, vol. 37(4), pages 1198-1207.
    7. Shi, Jianping & He, Ke & Fang, Hui, 2022. "Chaos, Hopf bifurcation and control of a fractional-order delay financial system," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 194(C), pages 348-364.
    8. Li, Xiuling & Wei, Junjie, 2005. "On the zeros of a fourth degree exponential polynomial with applications to a neural network model with delays," Chaos, Solitons & Fractals, Elsevier, vol. 26(2), pages 519-526.
    9. Qi, Guoyuan & Chen, Guanrong & Du, Shengzhi & Chen, Zengqiang & Yuan, Zhuzhi, 2005. "Analysis of a new chaotic system," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 352(2), pages 295-308.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rajpal, Akanksha & Bhatia, Sumit Kaur & Hiremath, Kirankumar R., 2022. "Inspecting the stability of non-linear IS-LM model with dual time delay," Chaos, Solitons & Fractals, Elsevier, vol. 165(P2).
    2. Liu, Yifan & Cai, Jiazhi & Xu, Haowen & Shan, Minghe & Gao, Qingbin, 2023. "Stability and Hopf bifurcation of a love model with two delays," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 205(C), pages 558-580.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Changjin Xu & Maoxin Liao & Peiluan Li & Qimei Xiao & Shuai Yuan, 2019. "Control Strategy for a Fractional-Order Chaotic Financial Model," Complexity, Hindawi, vol. 2019, pages 1-14, April.
    2. Shi, Jianping & He, Ke & Fang, Hui, 2022. "Chaos, Hopf bifurcation and control of a fractional-order delay financial system," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 194(C), pages 348-364.
    3. He, Ke & Shi, Jianping & Fang, Hui, 2024. "Bifurcation and chaos analysis of a fractional-order delay financial risk system using dynamic system approach and persistent homology," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 223(C), pages 253-274.
    4. Laarem, Guessas, 2021. "A new 4-D hyper chaotic system generated from the 3-D Rösslor chaotic system, dynamical analysis, chaos stabilization via an optimized linear feedback control, it’s fractional order model and chaos sy," Chaos, Solitons & Fractals, Elsevier, vol. 152(C).
    5. Ding, Yuting & Jiang, Weihua & Wang, Hongbin, 2012. "Hopf-pitchfork bifurcation and periodic phenomena in nonlinear financial system with delay," Chaos, Solitons & Fractals, Elsevier, vol. 45(8), pages 1048-1057.
    6. Wang, Shaojie & He, Shaobo & Yousefpour, Amin & Jahanshahi, Hadi & Repnik, Robert & Perc, Matjaž, 2020. "Chaos and complexity in a fractional-order financial system with time delays," Chaos, Solitons & Fractals, Elsevier, vol. 131(C).
    7. Xinggui Li & Ruofeng Rao & Xinsong Yang, 2022. "Impulsive Stabilization on Hyper-Chaotic Financial System under Neumann Boundary," Mathematics, MDPI, vol. 10(11), pages 1-18, May.
    8. Gao, Wei & Yan, Li & Saeedi, Mohammadhossein & Saberi Nik, Hassan, 2018. "Ultimate bound estimation set and chaos synchronization for a financial risk system," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 154(C), pages 19-33.
    9. Vasily E. Tarasov, 2019. "On History of Mathematical Economics: Application of Fractional Calculus," Mathematics, MDPI, vol. 7(6), pages 1-28, June.
    10. Son, Woo-Sik & Park, Young-Jai, 2011. "Delayed feedback on the dynamical model of a financial system," Chaos, Solitons & Fractals, Elsevier, vol. 44(4), pages 208-217.
    11. Qijia Yao & Hadi Jahanshahi & Larissa M. Batrancea & Naif D. Alotaibi & Mircea-Iosif Rus, 2022. "Fixed-Time Output-Constrained Synchronization of Unknown Chaotic Financial Systems Using Neural Learning," Mathematics, MDPI, vol. 10(19), pages 1-14, October.
    12. Ren, Jinfu & Liu, Yang & Liu, Jiming, 2023. "Chaotic behavior learning via information tracking," Chaos, Solitons & Fractals, Elsevier, vol. 175(P1).
    13. Wang, Lei & Chen, Yi-Ming, 2020. "Shifted-Chebyshev-polynomial-based numerical algorithm for fractional order polymer visco-elastic rotating beam," Chaos, Solitons & Fractals, Elsevier, vol. 132(C).
    14. Liang, Xiyin & Qi, Guoyuan, 2017. "Mechanical analysis of Chen chaotic system," Chaos, Solitons & Fractals, Elsevier, vol. 98(C), pages 173-177.
    15. Pratap, A. & Raja, R. & Cao, J. & Lim, C.P. & Bagdasar, O., 2019. "Stability and pinning synchronization analysis of fractional order delayed Cohen–Grossberg neural networks with discontinuous activations," Applied Mathematics and Computation, Elsevier, vol. 359(C), pages 241-260.
    16. Fendzi Donfack, Emmanuel & Nguenang, Jean Pierre & Nana, Laurent, 2020. "On the traveling waves in nonlinear electrical transmission lines with intrinsic fractional-order using discrete tanh method," Chaos, Solitons & Fractals, Elsevier, vol. 131(C).
    17. Li, Xing-Yu & Wu, Kai-Ning & Liu, Xiao-Zhen, 2023. "Mittag–Leffler stabilization for short memory fractional reaction-diffusion systems via intermittent boundary control," Applied Mathematics and Computation, Elsevier, vol. 449(C).
    18. Dong, Chengwei & Yang, Min & Jia, Lian & Li, Zirun, 2024. "Dynamics investigation and chaos-based application of a novel no-equilibrium system with coexisting hidden attractors," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 633(C).
    19. Balcı, Ercan & Öztürk, İlhan & Kartal, Senol, 2019. "Dynamical behaviour of fractional order tumor model with Caputo and conformable fractional derivative," Chaos, Solitons & Fractals, Elsevier, vol. 123(C), pages 43-51.
    20. César Cruz-Díaz & Basilio del Muro-Cuéllar & Gonzalo Duchén-Sánchez & Juan Francisco Márquez-Rubio & Martín Velasco-Villa, 2022. "Observer-Based PID Control Strategy for the Stabilization of Delayed High Order Systems with up to Three Unstable Poles," Mathematics, MDPI, vol. 10(9), pages 1-17, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:matcom:v:201:y:2022:i:c:p:343-361. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/mathematics-and-computers-in-simulation/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.