Economic Growth Model with Constant Pace and Dynamic Memory

Abstract

The article discusses a generalization of model of economic growth with constant pace, which takes into account the effects of dynamic memory. Memory means that endogenous or exogenous variable at a given time depends not only on their value at that time, but also on their values at previous times. To describe the dynamic memory we use derivatives of non-integer orders. We obtain the solutions of fractional differential equations with derivatives of non-integral order, which describe the dynamics of the output caused by the changes of the net investments and effects of power-law fading memory.

7 pages, PDF

References in corpus (4)

• Logistic map with memory from economic model
• Long and Short Memory in Economics: Fractional-Order Difference and Differentiation
• Fractional Dynamics of Natural Growth and Memory Effect in Economics
• Economic Accelerator with Memory: Discrete Time Approach

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