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Dynamic intersectoral models with power-law memory

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  • Valentina V. Tarasova
  • Vasily E. Tarasov

Abstract

Intersectoral dynamic models with power-law memory are proposed. The equations of open and closed intersectoral models, in which the memory effects are described by the Caputo derivatives of non-integer orders, are derived. We suggest solutions of these equations, which have the form of linear combinations of the Mittag-Leffler functions and which are characterized by different effective growth rates. Examples of intersectoral dynamics with power-law memory are suggested for two sectoral cases. We formulate two principles of intersectoral dynamics with memory: the principle of changing of technological growth rates and the principle of domination change. It has been shown that in the input-output economic dynamics the effects of fading memory can change the economic growth rate and dominant behavior of economic sectors.

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  • Valentina V. Tarasova & Vasily E. Tarasov, 2017. "Dynamic intersectoral models with power-law memory," Papers 1712.09087, arXiv.org.
    • Handle: RePEc:arx:papers:1712.09087
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    References listed on IDEAS

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    1. Scalas, Enrico, 2006. "The application of continuous-time random walks in finance and economics," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 362(2), pages 225-239.
    2. Cartea, Álvaro & del-Castillo-Negrete, Diego, 2007. "Fractional diffusion models of option prices in markets with jumps," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 374(2), pages 749-763.
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    6. Valentina V. Tarasova & Vasily E. Tarasov, 2017. "Economic interpretation of fractional derivatives," Papers 1712.09575, arXiv.org.
    7. Raberto, Marco & Scalas, Enrico & Mainardi, Francesco, 2002. "Waiting-times and returns in high-frequency financial data: an empirical study," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 314(1), pages 749-755.
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    9. Valentina V. Tarasova & Vasily E. Tarasov, 2017. "Logistic map with memory from economic model," Papers 1712.09092, arXiv.org.
    10. Tarasova, Valentina V. & Tarasov, Vasily E., 2017. "Logistic map with memory from economic model," Chaos, Solitons & Fractals, Elsevier, vol. 95(C), pages 84-91.
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