The effect of market confidence on a financial system from the perspective of fractional calculus: Numerical investigation and circuit realization

• Published in: Chaos, solitons and fractals solitons and fractals, 2020-11, Vol.140, p.110223, Article 110223
• Main Authors: Chen, Shu-Bo, Jahanshahi, Hadi, Alhadji Abba, Oumate, Solís-Pérez, J.E., Bekiros, Stelios, Gómez-Aguilar, J.F., Yousefpour, Amin, Chu, Yu-Ming
• Format: Article
• Language: English
• Subjects: Chaotic financial system; Fractional calculus, Circuit realization; Market confidence
• ISSN: 0960-0779; 1873-2887
• DOI: 10.1016/j.chaos.2020.110223

•The effect of market confidence on a financial system from the perspective of fractional calculus.•Investigation of chaotic behavior of the system through numerical simulations and analyses, such as the Lyapunov exponents, bifurcation diagrams, and phase portraits.•Designing and implementing an analog circuit to prove the feasibility of the system in real-world applications. Modeling and analysis of financial systems have been interesting topics among researchers. The more precisely we know dynamic of systems, the better we can deal with them. This way, in this paper, we investigate the effect of market confidence on a financial system from the perspective of fractional calculus. Market confidence, which is a significant concern in economic systems, is considered, and its effects are comprehensively investigated. The system has been studied through numerical simulations and analyses, such as the Lyapunov exponents, bifurcation diagrams, and phase portrait. It is shown that the system enters chaos through experiencing a cascade of period doublings, and the existence of chaos is verified. Finally, an analog circuit of the chaotic system is designed and implemented to prove its feasibility in real-world applications. Also, through the circuit implementation, the effects of different factors on the behavior of the systems are investigated.