Chaotic dynamic behavior analysis and control for a financial risk system

doi:10.1088/1674-1056/22/3/030509

Abstract According to the risk management process of financial market, a financial risk dynamic system is constructed in this paper. Through analyzing the basic dynamic property, we obtain the conditions for stability and bifurcation of the system based on Hopf bifurcation theory of nonlinear dynamical systems. In order to make the system's chaos disappear, we select the feedback gain matrix to design a class of chaotic controller. Numerical simulations are performed to reveal the change process of financial market risk. It is shown that, when the parameter of risk transmission rate changes, the system gradually comes into chaos from the asymptotically stable state through bifurcation. Besides, the controller can control chaos effectively.

Keywords: chaos attractor Hopf bifurcation financial risk chaos feedback control

Received: 28 January 2012
Revised: 20 November 2012
Accepted manuscript online:

PACS:	05.45.Jn	(High-dimensional chaos)
	05.45.Gg	(Control of chaos, applications of chaos)
	05.45.Pq	(Numerical simulations of chaotic systems)
	89.65.Gh	(Economics; econophysics, financial markets, business and management)

Fund: Project supported by the National Natural Science Foundation of China (Grant No. 70271068).

Corresponding Authors: Zhang Xiao-Dan
E-mail: bkdzxd@163.com

Cite this article:

Zhang Xiao-Dan (张晓丹), Liu Xiang-Dong (刘祥东), Zheng Yuan (郑媛), Liu Cheng (刘澄) Chaotic dynamic behavior analysis and control for a financial risk system 2013 Chin. Phys. B 22 030509

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Chaotic dynamic behavior analysis and control for a financial risk system

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