Logistic map with memory from economic model

TL;DR

This paper introduces a generalized logistic map incorporating memory effects and crises, modeled through fractional derivatives and integral equations, to better simulate economic growth dynamics with historical dependence.

Contribution

It develops a novel logistic map with memory based on fractional calculus, extending traditional models to include historical influence and sudden crises in economic processes.

Findings

Derived exact discrete maps with memory from fractional differential equations.

Modeled economic crises as sharp bursts using delta-functions.

Extended logistic growth models to include power-law memory effects.

Abstract

A generalization of the economic model of logistic growth, which takes into account the effects of memory and crises, is suggested. Memory effect means that the economic factors and parameters at any given time depend not only on their values at that time, but also on their values at previous times. For the mathematical description of the memory effects, we use the theory of derivatives of non-integer order. Crises are considered as sharp splashes (bursts) of the price, which are mathematically described by the delta-functions. Using the equivalence of fractional differential equations and the Volterra integral equations, we obtain discrete maps with memory that are exact discrete analogs of fractional differential equations of economic processes. We derive logistic map with memory, its generalizations, and "economic" discrete maps with memory from the fractional differential equations, which describe the economic natural growth with competition, power-law memory and crises.