Economic modeling using artificial intelligence methods (Q1946766)

The book explores the application of artificial intelligence methods to economic data modelling. Artificial intelligence allows for the flexible multiple-order nonlinear modelling of such data in contrast to the linear models traditionally developed in the past. Within its 14 chapters, the book examines the application of techniques such as neural networks (in particular multi-layer perceptron neural networks, radial basis function and support vector machines), rough sets, automatic relevance determination, autoassociative network, particle swarm optimisation, genetic algorithms, simulated annealing, Bayesian networks and multi-agent systems, incremental learning and fuzzy networks. Game theory, control systems, and Fourier and wavelet transformations are also examined. The book introduces important subjects such as economic data handling and modelling, prediction, knowledge discovery and causality vs. correlation, and outlines common problems in them. The presented artificial intelligence methods are used to analyse various economic data such as the stock market, inflation, credit rating, option pricing and portfolio optimisation and describe subjects such as inflation targeting. Finally these methods are used to model interstate conflict and study the role of economic interdependency for peace maintenance. Given the above contributions in the area of econometrics, the book is well addressed to graduate students as well as researchers and practitioners in the field of finance and economics.