Modeling of Macroeconomics by a Novel Discrete Nonlinear Fractional Dynamical System
We propose a new nonlinear economic system with fractional derivative. According to the Jumarie’s definition of fractional derivative, we obtain a discrete fractional nonlinear economic system. Three variables, the gross domestic production, inflation, and unemployment rate, are considered by this n...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Wiley
2013-01-01
|
| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2013/275134 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1832549735282507776 |
|---|---|
| author | Zhenhua Hu Wen Chen |
| author_facet | Zhenhua Hu Wen Chen |
| author_sort | Zhenhua Hu |
| collection | DOAJ |
| description | We propose a new nonlinear economic system with fractional derivative. According to the Jumarie’s definition of fractional derivative, we obtain a discrete fractional nonlinear economic system. Three variables, the gross domestic production, inflation, and unemployment rate, are considered by this nonlinear system. Based on the concrete macroeconomic data of USA, the coefficients of this nonlinear system are estimated by the method of least squares. The application of discrete fractional economic model with linear and nonlinear structure is shown to illustrate the efficiency of modeling the macroeconomic data with discrete fractional dynamical system. The empirical study suggests that the nonlinear discrete fractional dynamical system can describe the actual economic data accurately and predict the future behavior more reasonably than the linear dynamic system. The method proposed in this paper can be applied to investigate other macroeconomic variables of more states. |
| format | Article |
| id | doaj-art-97a5e0d0037f41b29fc78d19a0ad40b7 |
| institution | Kabale University |
| issn | 1026-0226 1607-887X |
| language | English |
| publishDate | 2013-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-97a5e0d0037f41b29fc78d19a0ad40b72025-02-03T06:08:48ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2013-01-01201310.1155/2013/275134275134Modeling of Macroeconomics by a Novel Discrete Nonlinear Fractional Dynamical SystemZhenhua Hu0Wen Chen1Business School, Central South University, Changsha, Hunan 410083, ChinaBusiness School, Central South University, Changsha, Hunan 410083, ChinaWe propose a new nonlinear economic system with fractional derivative. According to the Jumarie’s definition of fractional derivative, we obtain a discrete fractional nonlinear economic system. Three variables, the gross domestic production, inflation, and unemployment rate, are considered by this nonlinear system. Based on the concrete macroeconomic data of USA, the coefficients of this nonlinear system are estimated by the method of least squares. The application of discrete fractional economic model with linear and nonlinear structure is shown to illustrate the efficiency of modeling the macroeconomic data with discrete fractional dynamical system. The empirical study suggests that the nonlinear discrete fractional dynamical system can describe the actual economic data accurately and predict the future behavior more reasonably than the linear dynamic system. The method proposed in this paper can be applied to investigate other macroeconomic variables of more states.http://dx.doi.org/10.1155/2013/275134 |
| spellingShingle | Zhenhua Hu Wen Chen Modeling of Macroeconomics by a Novel Discrete Nonlinear Fractional Dynamical System Discrete Dynamics in Nature and Society |
| title | Modeling of Macroeconomics by a Novel Discrete Nonlinear Fractional Dynamical System |
| title_full | Modeling of Macroeconomics by a Novel Discrete Nonlinear Fractional Dynamical System |
| title_fullStr | Modeling of Macroeconomics by a Novel Discrete Nonlinear Fractional Dynamical System |
| title_full_unstemmed | Modeling of Macroeconomics by a Novel Discrete Nonlinear Fractional Dynamical System |
| title_short | Modeling of Macroeconomics by a Novel Discrete Nonlinear Fractional Dynamical System |
| title_sort | modeling of macroeconomics by a novel discrete nonlinear fractional dynamical system |
| url | http://dx.doi.org/10.1155/2013/275134 |
| work_keys_str_mv | AT zhenhuahu modelingofmacroeconomicsbyanoveldiscretenonlinearfractionaldynamicalsystem AT wenchen modelingofmacroeconomicsbyanoveldiscretenonlinearfractionaldynamicalsystem |