The effect of market confidence on a financial system from the perspective of fractional calculus: Numerical investigation and circuit realization

Shu-Bo Chen, Hadi Jahanshahi, Oumate Alhadji Abba, J.E. Solís-Pérez, Stelios Bekiros, J.F. Gómez-Aguilar, Amin Yousefpour and Yu-Ming Chu

Chaos, Solitons & Fractals, 2020, vol. 140, issue C

Abstract: Modeling and analysis of financial systems have been interesting topics among researchers. The more precisely we know dynamic of systems, the better we can deal with them. This way, in this paper, we investigate the effect of market confidence on a financial system from the perspective of fractional calculus. Market confidence, which is a significant concern in economic systems, is considered, and its effects are comprehensively investigated. The system has been studied through numerical simulations and analyses, such as the Lyapunov exponents, bifurcation diagrams, and phase portrait. It is shown that the system enters chaos through experiencing a cascade of period doublings, and the existence of chaos is verified. Finally, an analog circuit of the chaotic system is designed and implemented to prove its feasibility in real-world applications. Also, through the circuit implementation, the effects of different factors on the behavior of the systems are investigated.

Keywords: Chaotic financial system; Market confidence; Fractional calculus, Circuit realization (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (19)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:chsofr:v:140:y:2020:i:c:s0960077920306196

DOI: 10.1016/j.chaos.2020.110223

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