Global Stability of a Markovian Jumping Chaotic Financial System with Partially Unknown Transition Rates under Impulsive Control Involved in the Positive Interest Rate

• Main Author: Ruofeng Rao
• Format: Article
• Language: English
• Published: MDPI AG 2019-06-01
• Series: Mathematics
• Subjects: positive interest rate; chaotic financial system; reduction to absurdity; mathematical induction method; impulse control
• Online Access: https://www.mdpi.com/2227-7390/7/7/579

The intrinsic instability of the financial system itself results in chaos and unpredictable economic behavior. To gain the globally asymptotic stability of the equilibrium point with a positive interest rate of the chaotic financial system, pulse control is sometimes very necessary and is employed in this paper to derive the globally exponential stability of financial system. It should be pointed out that the delayed feedback model brings an essential difficulty so that the regional control method has to be adopted. In this paper, the author firstly employs impulsive control, regional control, the Lyapunov function technique, and variational methods to derive the stochastically globally asymptotic stability criterion of the economic balance point with a positive interest rate for a delayed feedback financial system with Markovian jumping and partially unknown transition rates. Besides, the mathematical induction method and the proof by contradiction are applied synthetically to deduce the globally exponential stability of the equilibrium point with a positive interest rate for the impulsive financial system without time-delays. Moreover, numerical examples illustrate that under suitable data conditions on the two main criteria mentioned above, the interest rates are positive decimals when the financial system reaches stability, which means better economic significance.