Economic interpretation of fractional derivatives
Economics
2017-12-29 v1 Classical Analysis and ODEs
Abstract
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.
Keywords
Cite
@article{arxiv.1712.09575,
title = {Economic interpretation of fractional derivatives},
author = {Valentina V. Tarasova and Vasily E. Tarasov},
journal= {arXiv preprint arXiv:1712.09575},
year = {2017}
}
Comments
10 pages, 2 figures, LaTeX