An international research collaboration by Muhamad Deni Johansyah from Universitas Padjadjaran, Indonesia, Sundarapandian Vaidyanathan from Vel Tech University, India, Khaled Benkouider from Badji Mokhtar-Annaba University, Algeria, Aceng Sambas from Universiti Sultan Zainal Abidin, Malaysia, Kandimalla Mallikarjuna Rao from KKR & KSR Institute of Technology and Sciences, India, and Katuru Anjaneyulu from KITS Akshar Institute of Technology, India, has investigated the dynamics of a novel 3-D finance model incorporating absolute function nonlinearity.
The problem addressed is that financial systems often exhibit nonlinear and chaotic behavior, making it difficult to predict long-term stability or risks. Mathematical modeling of these dynamics can help in understanding the balance between order and chaos in economic and financial processes.
To address this, the researchers formulated and analyzed a three-dimensional finance model using absolute function nonlinearity. The model was studied through theoretical stability analysis and numerical simulations to explore its equilibrium points, bifurcations, and chaotic dynamics under different parameter conditions.
The study finds that the model exhibits rich dynamical behavior, including stable states, periodic oscillations, and chaotic attractors, depending on parameter variations. These findings provide insights into the mechanisms that drive unpredictability in financial systems, offering potential applications in risk management and financial stability assessment.
This research contributes to multiple United Nations Sustainable Development Goals (SDGs):
- SDG 8 (Decent Work and Economic Growth): by advancing understanding of financial system dynamics relevant to stability and sustainability.
- SDG 9 (Industry, Innovation, and Infrastructure): through the development of advanced mathematical tools for economic modeling.
- SDG 17 (Partnerships for the Goals): by fostering collaboration between institutions in Indonesia, India, Algeria, and Malaysia.
Overall, this study demonstrates how nonlinear dynamics and chaos theory can be applied to financial modeling, providing new perspectives on the stability and complexity of economic systems.
17_Mat_2025
