ANN (Artificial Neural Network) models and Spline techniques have been applied to economic analysis, to handle economic problems, evaluate portfolio risk and stock performance, and to forecast stock exchange rates and gold prices. These techniques are improving nowadays and continue to serve as...

This paper focuses on the time series’ decomposition and economic representation of its constituent parts. Wavelet transforms are used for adaptive analysis of local behaviour of heterogeneous agents. Unlike fully revealing equilibrium of homogeneous beliefs, in the environment with...

Data Envelopment Analysis (DEA) is a non-parametric measurement technique based on mathematical programming to measure the efficiency level of the firms by determining multiple input and output variables. Artificial neural network (ANN) is information processing system and computer program that...

The primary objective of this paper is to propose two nonlinear extensions for macroeconomic forecasting using large datasets. First, we propose an alternative technique for factor estimation, i.e., kernel principal component analysis, which allows the factors to have a nonlinear relationship to...

The computational intelligence techniques are used in problems which can not be solved by traditional techniques when there is insufficient data to develop a model problem or when they have errors.Computational intelligence, as he called Bezdek (Bezdek, 1992) aims at modeling of biological...

This paper aims to introduce a nonlinear model to forecast macroeconomic time series using a large number of predictors. The technique used to summarize the predictors in a small number of variables is Principal Component Analysis (PC), while the method used to capture nonlinearity is artificial...

We assess the power of artificial neural network models as forecasting tools for monthly inflation rates for 28 OECD countries. For short out-of-sample forecasting horizons, we find that, on average, for 45% of the countries the ANN models were a superior predictor while the AR1 model performed...

The paper theoretically and empirically investigates the effect of changes in national labourmarket conditions on regional growth from the point of view of local economies. The mechanism of efficiency wage is introduced to a growth model and it is argued that local regions belonging to richer...

During the last three decades various models have been proposed by the literature to predict the risk of bankruptcy and of firm insolvency. In this work there is a survey on the methodologies used by the author for the analysis of default risk, taking into account several approaches suggested by...

This paper presents a rigurous framework for evaluating alternative forecasting methods for Chilean industrial production and sales. While nonlinear features appear to be important for forecasting the very short term, simple univariate linear models perform about as well for almost every...