Dynamic Analysis of a Fractional-Order Economic Model: Chaos and Control

Fractional calculus in discrete-time is a recent field that has drawn much interest for dealing with multidisciplinary systems. A result of this tremendous potential, researchers have been using constant and variable-order fractional discrete calculus in the modelling of financial and economic systems. This paper explores the emergence of chaotic and regular patterns of the fractional four-dimensional (4D) discrete economic system with constant and variable orders. The primary aim is to compare and investigate the impact of two types of fractional order through numerical solutions and simulation, demonstrating how modifications to the order affect the behavior of a system. Phase space orbits, the 0-1 test, time series, bifurcation charts, and Lyapunov exponent analysis for different orders all illustrate the constant and variable-order systems’ behavior. Moreover, the spectral entropy (SE) and $C_0$ complexity exhibit fractional-order effects with variations in the degree of complexity. The results provide new insights into the influence of fractional-order types on dynamical systems and highlight their role in promoting chaotic behavior. Additionally, two types of control strategies are devised to guide the states of a 4D fractional discrete economic system with constant and variable orders to the origin within a specified amount of time. MATLAB simulations are presented to demonstrate the efficacy of the findings.