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A Note on Caputo’s Derivative Operator Interpretation in Economy

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  • Hameed Ur Rehman
  • Maslina Darus
  • Jamal Salah

Abstract

We propound the economic idea in terms of fractional derivatives, which involves the modified Caputo’s fractional derivative operator. The suggested economic interpretation is based on a generalization of average count and marginal value of economic indicators. We use the concepts of T − indicators which analyses the economic performance with the presence of memory. The reaction of economic agents due to recurrence identical alteration is minimized by using the modified Caputo’s derivative operator of order λ instead of integer order derivative n. The two sides of Caputo’s derivative are expressed by a brief time‐line. The degree of attenuation is further depressed by involving the modified Caputo’s operator.

Suggested Citation

  • Hameed Ur Rehman & Maslina Darus & Jamal Salah, 2018. "A Note on Caputo’s Derivative Operator Interpretation in Economy," Journal of Applied Mathematics, John Wiley & Sons, vol. 2018(1).
    • Handle: RePEc:wly:jnljam:v:2018:y:2018:i:1:n:1260240
    DOI: 10.1155/2018/1260240
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    References listed on IDEAS

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    1. Mainardi, Francesco & Raberto, Marco & Gorenflo, Rudolf & Scalas, Enrico, 2000. "Fractional calculus and continuous-time finance II: the waiting-time distribution," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 287(3), pages 468-481.
    2. J. A. Tenreiro Machado & Alexandra M. S. F. Galhano & Juan J. Trujillo, 2014. "On development of fractional calculus during the last fifty years," Scientometrics, Springer;Akadémiai Kiadó, vol. 98(1), pages 577-582, January.
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