This chapter discusses simulation methods that are both important and useful in the solution of integration problems, and discusses the principles for the practical application of simulation in economics with a focus on integration problems. The simulation methods are generally straightforward...

This chapter explores the numerical methods for solving dynamic programming (DP) problems. The DP framework has been extensively used in economics because it is sufficiently rich to model almost any problem involving sequential decision making over time and under uncertainty. The chapter focuses...

This chapter discusses the widely used control model in economics, the Linear Quadratic Control Model (LQCM).The major advantage of LQCM is that it has, in general, a unique analytical solution. However, this is not necessarily true when dealing with forward-looking behavior or stochastic...

This chapter examines local and global approximation methods that have been used or have potential future value in economic and econometric analysis. The chapter presents the related projection method for solving operator equations and illustrates its application to dynamic economic analysis,...

This chapter discusses the design of mathematica, the front end, programming, packages, mathsource, and application in economics. Mathematica is a computer program that can help in mathematics. It can be used to do symbolic, numeric, and graphical analysis. There are two parts to the Mathematica...

A GAMS model is a collection of statements in the GAMS language that define the variables of the model, specify the symbolic relationships among them in the form of equations, specify data structures and assign values to them, and instructs the computer to generate and solve the model. This...

This chapter describes feedforward neural networks as approximators and relates them to statistical discriminant functions, and explains the ways in which neural nets of varying complexity can represent equilibria in two repeated games and one dynamic economic model. Because linear strategies...

This chapter emphasizes specific contributions, advantages, and weaknesses of artificial intelligence (AI) techniques various purposes: (1) knowledge-based reasoning that applies heuristic knowledge to make policy search more robust, or to satisfy trading principles in a competitive economy, (2)...