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General Fractional Economic Dynamics with Memory

Author

Listed:
  • Vasily E. Tarasov

    (Skobeltsyn Institute of Nuclear Physics, Lomonosov Moscow State University, Moscow 119991, Russia
    Department of Physics, 915, Moscow Aviation Institute, National Research University, Moscow 125993, Russia)

Abstract

For the first time, a self-consistent mathematical approach to describe economic processes with a general form of a memory function is proposed. In this approach, power-type memory is a special case of such general memory. The memory is described by pairs of memory functions that satisfy the Sonin and Luchko conditions. We propose using general fractional calculus (GFC) as a mathematical language that allows us to describe a general form of memory in economic processes. The existence of memory (non-locality in time) means that the process depends on the history of changes to this process in the past. Using GFC, exactly solvable economic models of natural growth with a general form of memory are proposed. Equations of natural growth with general memory are equations with general fractional derivatives and general fractional integrals for which the fundamental theorems of GFC are satisfied. Exact solutions for these equations of models of natural growth with general memory are derived. The properties of dynamic maps with a general form of memory are described in the general form and do not depend on the choice of specific types of memory functions. Examples of these solutions for various types of memory functions are suggested.

Suggested Citation

  • Vasily E. Tarasov, 2024. "General Fractional Economic Dynamics with Memory," Mathematics, MDPI, vol. 12(15), pages 1-24, August.
    • Handle: RePEc:gam:jmathe:v:12:y:2024:i:15:p:2411-:d:1449011
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    References listed on IDEAS

    as
    1. Rudolf Hilfer & Yuri Luchko, 2019. "Desiderata for Fractional Derivatives and Integrals," Mathematics, MDPI, vol. 7(2), pages 1-5, February.
    2. Sadeghi, Amir & Cardoso, João R., 2018. "Some notes on properties of the matrix Mittag-Leffler function," Applied Mathematics and Computation, Elsevier, vol. 338(C), pages 733-738.
    3. Vasily E. Tarasov, 2022. "General Non-Local Continuum Mechanics: Derivation of Balance Equations," Mathematics, MDPI, vol. 10(9), pages 1-43, April.
    4. Banerjee, Anindya & Urga, Giovanni, 2005. "Modelling structural breaks, long memory and stock market volatility: an overview," Journal of Econometrics, Elsevier, vol. 129(1-2), pages 1-34.
    5. Vasily E. Tarasov, 2019. "Rules for Fractional-Dynamic Generalizations: Difficulties of Constructing Fractional Dynamic Models," Mathematics, MDPI, vol. 7(6), pages 1-50, June.
    6. Vasily E. Tarasov, 2021. "General Fractional Vector Calculus," Mathematics, MDPI, vol. 9(21), pages 1-87, November.
    7. Tarasov, Vasily E., 2023. "Nonlocal statistical mechanics: General fractional Liouville equations and their solutions," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 609(C).
    8. Mohammed Al-Refai & Yuri Luchko, 2023. "The General Fractional Integrals and Derivatives on a Finite Interval," Mathematics, MDPI, vol. 11(4), pages 1-13, February.
    9. Vasily E. Tarasov, 2022. "Nonlocal Probability Theory: General Fractional Calculus Approach," Mathematics, MDPI, vol. 10(20), pages 1-82, October.
    10. Baillie, Richard T., 1996. "Long memory processes and fractional integration in econometrics," Journal of Econometrics, Elsevier, vol. 73(1), pages 5-59, July.
    11. Maryam Al-Kandari & Latif A-M. Hanna & Yuri Luchko, 2022. "Operational Calculus for the General Fractional Derivatives of Arbitrary Order," Mathematics, MDPI, vol. 10(9), pages 1-17, May.
    12. Vasily E. Tarasov, 2021. "General Fractional Calculus: Multi-Kernel Approach," Mathematics, MDPI, vol. 9(13), pages 1-14, June.
    13. Stefan G. Samko & Rogério P. Cardoso, 2003. "Integral equations of the first kind of Sonine type," International Journal of Mathematics and Mathematical Sciences, Hindawi, vol. 2003, pages 1-24, January.
    14. Vasily E. Tarasov, 2019. "On History of Mathematical Economics: Application of Fractional Calculus," Mathematics, MDPI, vol. 7(6), pages 1-28, June.
    15. Vasily E. Tarasov, 2020. "Mathematical Economics: Application of Fractional Calculus," Mathematics, MDPI, vol. 8(5), pages 1-3, April.
    16. Yuri Luchko, 2021. "General Fractional Integrals and Derivatives with the Sonine Kernels," Mathematics, MDPI, vol. 9(6), pages 1-17, March.
    17. Tarasov, Vasily E., 2020. "Fractional econophysics: Market price dynamics with memory effects," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 557(C).
    18. William R. Parke, 1999. "What Is Fractional Integration?," The Review of Economics and Statistics, MIT Press, vol. 81(4), pages 632-638, November.
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