AIMS Mathematics (Aug 2024)

A novel modeling and prediction approach using Caputo derivative: An economical review via multi-deep assessment methodology

  • Nisa Özge Önal Tuğrul ,
  • Kamil Karaçuha,
  • Esra Ergün,
  • Vasil Tabatadze,
  • Ertuğrul Karaçuha

DOI
https://doi.org/10.3934/math.20241143
Journal volume & issue
Vol. 9, no. 9
pp. 23512 – 23543

Abstract

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In this study, we proposed a novel modeling and prediction method employing both fractional calculus and the multi-deep assessment methodology (M-DAM), utilizing multifactor analysis across the entire dataset from 2000 to 2019 for comprehensive data modeling and prediction. We evaluated and reported the performance of M-DAM by modeling various economic factors such as current account balance (% of gross domestic product (GDP)), exports of goods and services (% of GDP), GDP growth (annual %), gross domestic savings (% of GDP), gross fixed capital formation (% of GDP), imports of goods and services (% of GDP), inflation (consumer prices, annual %), overnight interbank rate, and unemployment (total). The dataset used in this study covered the years between 2000 and 2019. The Group of Eight (G-8) countries and Turkey were chosen as the experimental domain. Furthermore, to understand the validity of M-DAM, we compared the modeling performance with multiple linear regression (MLR) and the one-step prediction performance with a recurrent neural network, long short-term memory (LSTM), and MLR. The results showed that in 75.04% of the predictions, M-DAM predicted the factors with less than 10% error. For the order of predictability considering the years 2018 and 2019, Germany was the most predictable country; the second group consisted of Canada, France, the UK, and the USA; the third group included Italy and Japan; and the fourth group comprised Russia. The least predictable country was found to be Turkey. Comparison with LSTM and MLR showed that the three methods behave complementarily.

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