# A Solow-Swan framework for economic growth with memory effect

## TL;DR

This paper extends the classical Solow-Swan economic growth model by incorporating fractional calculus to account for memory effects, revealing significant impacts on growth trajectories and stability.

## Contribution

It introduces a fractional-order formulation of the Solow-Swan model, providing a novel approach to include memory effects in economic growth analysis.

## Key findings

- Fractional derivatives alter growth trajectories.
- Memory effects influence long-term stability.
- Fractional model offers greater flexibility.

## Abstract

The Solow-Swan equation is a cornerstone in the development of modern economic growth theory and continues to attract significant scholarly attention. This study incorporates memory effects into the classical Solow-Swan model by introducing a formulation based on the Caputo fractional derivative. A comparative analysis is conducted between the integer-order and fractional-order versions of the model to examine the influence of fractional dynamics on capital accumulation. The findings reveal that the inclusion of a fractional-order derivative significantly affects the trajectory and long-term stability of capital, offering a more flexible and comprehensive framework for modeling economic growth processes.