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arxiv: 1712.09087 · v1 · pith:UREDTF4Lnew · submitted 2017-12-25 · 💱 q-fin.EC

Dynamic intersectoral models with power-law memory

classification 💱 q-fin.EC
keywords memoryintersectoraldynamicseconomicgrowthmodelspower-lawchange
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Intersectoral dynamic models with power-law memory are proposed. The equations of open and closed intersectoral models, in which the memory effects are described by the Caputo derivatives of non-integer orders, are derived. We suggest solutions of these equations, which have the form of linear combinations of the Mittag-Leffler functions and which are characterized by different effective growth rates. Examples of intersectoral dynamics with power-law memory are suggested for two sectoral cases. We formulate two principles of intersectoral dynamics with memory: the principle of changing of technological growth rates and the principle of domination change. It has been shown that in the input-output economic dynamics the effects of fading memory can change the economic growth rate and dominant behavior of economic sectors.

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