A Note on Caputo’s Derivative Operator Interpretation in Economy

Abstract

We propound the economic idea in terms of fractional derivatives, which involves the modified Caputo’s fractional derivative operator. The suggested economic interpretation is based on a generalization of average count and marginal value of economic indicators. We use the concepts ofT-indicatorswhich analyses the economic performance with the presence of memory. The reaction of economic agents due to recurrence identical alteration is minimized by using the modified Caputo’s derivative operator of orderλinstead of integer order derivativen. The two sides of Caputo’s derivative are expressed by a brief time-line. The degree of attenuation is further depressed by involving the modified Caputo’s operator.