On fractional discrete financial system: Bifurcation, chaos, and control

doi:10.1088/1674-1056/ad5d96

Abstract The dynamic analysis of financial systems is a developing field that combines mathematics and economics to understand and explain fluctuations in financial markets. This paper introduces a new three-dimensional (3D) fractional financial map and we dissect its nonlinear dynamics system under commensurate and incommensurate orders. As such, we evaluate when the equilibrium points are stable or unstable at various fractional orders. We use many numerical methods, phase plots in 2D and 3D projections, bifurcation diagrams and the maximum Lyapunov exponent. These techniques reveal that financial maps exhibit chaotic attractor behavior. This study is grounded on the Caputo-like discrete operator, which is specifically influenced by the variance of the commensurate and incommensurate orders. Furthermore, we confirm the presence and measure the complexity of chaos in financial maps by the 0-1 test and the approximate entropy algorithm. Additionally, we offer nonlinear-type controllers to stabilize the fractional financial map. The numerical results of this study are obtained using MATLAB.

Keywords: financial model stability chaos commensurate and incommensurate orders complexity

Received: 22 May 2024
Revised: 19 June 2024
Accepted manuscript online: 02 July 2024

PACS:	02.30.Yy	(Control theory)
	02.30.Oz	(Bifurcation theory)

Corresponding Authors: Amel Hioual
E-mail: amel.hioual@univ-oeb.dz

Cite this article:

Louiza Diabi, Adel Ouannas, Amel Hioual, Shaher Momani, and Abderrahmane Abbes On fractional discrete financial system: Bifurcation, chaos, and control 2024 Chin. Phys. B 33 100201

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