Economic interpretation of fractional derivatives

By Valentina V. Tarasova, Vasily E. Tarasov. 2017

73 citations recorded by the source corpus.

An economic interpretation of the Caputo derivatives of non-integer orders is proposed. The suggested economic interpretation of the fractional derivatives is based on a generalization of average and marginal values of economic indicators. We formulate an economic interpretation by using the concept of the T-indicator that allows us to describe economic processes with memory. The standard average and marginal values of indicator are special cases of the proposed T-indicator, when the order is equal to zero and one, respectively. The fractional derivatives are interpreted as economic characteristics (indicators) that are intermediate between the standard average and marginal values of indicators.

Subfields: Economics and Econometrics, Modeling and Simulation

View Paper: https://www.semanticscholar.org/paper/37264d30cfcd1fe340200b4b9849c3a6cf3ab3e7

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Citations in the corpus

Logistic map with memory from economic model (2017, background): “There is an economic interpretation of the fractional derivatives [14, 15].”