Using Multistage Laplace Adomian Decomposition Method to Solve Chaotic Financial System

Bonyah Ebenezer *

Department of Mathematics and Statistics, Kumasi Polytechnic, Kumasi, Ghana.

O. T. Kolebaje

Department of Physics, Adeyemi College of Education, Ondo, Nigeria.

Kwasi Awuah-Werekoh

Business School, Ghana Institute of Management and Public Administration, Accra, Ghana.

*Author to whom correspondence should be addressed.


Abstract

In this paper, a new reliable algorithm, multistage Laplace Adomian decomposition method (MLADM) based on standard Laplace – Adomian method, is presented to solve a time- fractional financial model for both chaotic and non- chaotic. The new algorithm is just a simple modification of Laplace- Adomian method (LAM). This method   is considered as an algorithm in a sequence of small intervals for obtaining accurate approximate solutions. The study depicts that the LADM provides reliable results for t ˂˂ 1. Numerical comparisons between the MLADM and the classical  Runge- Kutta fourth order method (RK4) in the case of integer-order derivatives solutions indicates that the MLADM gives better output with high accuracy and is a promising technique for nonlinear systems of integer and fractional order.

Keywords: Laplace Adomian decomposition method, Runge- Kutta fourth order method, Laplace- Adomian method, Riemann Liouville integral, Chaos theory.


How to Cite

Ebenezer, Bonyah, O. T. Kolebaje, and Kwasi Awuah-Werekoh. 2015. “Using Multistage Laplace Adomian Decomposition Method to Solve Chaotic Financial System”. Journal of Advances in Mathematics and Computer Science 13 (4):1-14. https://doi.org/10.9734/BJMCS/2016/22102.

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