The paper examines comparatively the impact of the financial system development on the poverty rate in three countries, in Azerbaijan, Turkey, and Iran. The authors have calculated aggregately all ...four aspects of financial development by developing four new indices. The effects of these indicators on poverty, as well as the effects of the annual change of these indicators on the annual change in the poverty rate, were analyzed by the OLS method. The econometric analysis used to check the stationarity of the time series, the cointegration method, and the ADF test. The main result is that the financial system has a weak effect on poverty in Azerbaijan, where traditional banking is fully implemented, and in Turkey, where Islamic banking is partially implemented. However, in Iran, where only Islamic banking is practiced, the indices of the financial system's efficiency and stability have a strong negative impact on poverty.
•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.
The global financial system is constantly evolving. The most recent trend seems to be fragmentation of the world financial system, and there is solid evidence that the debt markets are indeed more ...fragmented than it used to be perceived. However, the stock market fragmentation is less researched, and this study aims to investigate whether this fragmentation exists. On the basis of several hypotheses, it was revealed that indeed, the stock markets are also very much fragmented, which increases the degree of the de-globalization trends to higher levels than earlier believed. It becomes evident that the financial system is less global, and arbitrage is the more persistent characteristic of contemporary financial markets.
This study investigates to which extent results produced by a single frontier model are reliable, based on the application of data envelopment analysis and stochastic frontier approach to a sample of ...Chinese local banks. Our findings show they produce a consistent trend on global efficiency scores over the years. However, rank correlations indicate they diverge with respect to individual performance diagnoses. Therefore, these models provide steady information on the efficiency of the banking system as a whole, but they become divergent at the individual level.
•We study and compare the reliability of the single frontier model (SFA) and data envelopment analysis (DEA).•We conduct our study using real data on Chinese local banks.•We find a consistent trend of SFA and DEA in the macro-level perspective•We find that SFA and DEA diverge in their results in a micro-level perspective.
•We propose a new generalize numerical schemes for simulating variable-order fractional differential operators.•Numerical schemes are based on the fundamental theorem of fractional calculus and the ...Lagrange polynomial interpolation.•Numerical simulations for the chaotic financial system and memcapacitor-based circuit are obtained.
Variable-order differential operators can be employed as a powerful tool to modeling nonlinear fractional differential equations and chaotical systems. In this paper, we propose a new generalize numerical schemes for simulating variable-order fractional differential operators with power-law, exponential-law and Mittag-Leffler kernel. The numerical schemes are based on the fundamental theorem of fractional calculus and the Lagrange polynomial interpolation. These schemes were applied to simulate the chaotic financial system and memcapacitor-based circuit chaotic oscillator. Numerical examples are presented to show the applicability and efficiency of this novel method.
•We have developed a model for complex economic systems utilizing variable-order fractional derivatives.•The system's behaviour is highy dependent upon the value of fractional-order derivatives.•A ...nonlinear model predictive controller (NMPC) for hyperchaotic control is introduced.•The robust control suppresses the chaotic behaviour and stabilizes the close-loop system, while also rejecting any external bounded disturbances.
Mathematical modelling plays an indispensable role in our understanding of systems and phenomena. However, most mathematical models formulated for systems either have an integer order derivate or posses constant fractional-order derivative. Hence, their performance significantly deteriorates in some conditions. For the first time in the current paper, we develop a model of an economic system with variable-order fractional derivatives. Our underlying assumption is that the values of fractional derivatives are time-varying functions instead of constant parameters. The effects of variable-order time derivative into the economic system is studied. The dependency of the system's behaviour on the value of the fractional-order derivative is investigated. Afterwards, a nonlinear model predictive controller (NMPC) for hyperchaotic control of the system is suggested. The necessary optimality and sufficient conditions for solving the nonlinear optimal control problem (NOCP) of the NMPC in the form of fractional calculus with variable-order which is formulated as a two-point boundary value problem (TPBVP) are derived. Since the proposed methodology is a robust controller, the efficiency of the proposed controller in the presence of external bounded disturbances is examined. Simulation results show that not only does the presented control approach suppresses the related chaotic behaviour and stabilizes the close-loop system, but it also rejects the external bounded disturbances.
The growing influence of the financial system (hereinafter referred to as FS) on all economic processes is one of the critical features of contemporary development, both globally and nationally. Both ...underestimation and overestimation of the role of finance in the modern economy result in crisis phenomena at the local level and at the level of the global FS, as evidenced by the global 2007–2008 financial crisis. In addition, the rapid development of technologies, including financial ones, has a significant effect on the financial relations that are being formed at different economic levels, namely subnational, national, regional, and world, and can change their development paradigm. Nowadays, several classifications of the FS in different countries can be distinguished. Taking into account the analysis of the existing research in this direction, the classification of the FS is systematized. It should also be noted that, despite the FS type, they are characterized by a loss of stability. This issue is particularly acute nowadays because it is the main purpose of regulating the FS in each country and in the whole world. The problem of stability of the FS of Ukraine requires the development of scientific and methodological approaches to its solution, namely the methodological support for its restructuring, taking into consideration the globalization processes inherent in the global financial system. Therefore, the article singles out a number of factors that have a significant influence on the formation of stability. Besides, based on the review of the literature analyzing the crisis phenomena in the economy, the classification features of the crises was carried out.
This research study proposes a novel hyperchaotic finance system with profit margin and then utilizes the Adomian Decomposition Method (ADM) to tackle the solution of the associated Caputo-derivative ...based fractional-order hyperchaotic finance system with profit margin. Numerical simulations and analyses, such as the evaluation of Lyapunov exponents (LE), the creation of bifurcation diagrams (BD), the complexity analysis (CA), and the 0-1 test, are used to get a full picture of the system. The results of our study demonstrate the occurrence of periodic, chaotic, and hyperchaotic dynamics in the system. Furthermore, the overall criteria for the existence and the uniqueness of the exact solutions for Caputo fractional-order models are presented. In addition, we present a control methodology for the fractional-order hyperchaotic financial system utilizing the Laplace transform and linear feedback control. Significantly, our research showcases a noteworthy correlation between the analytical results and numerical simulations, emphasizing the soundness and effectiveness of our methodology.
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