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Genetic Algorithms for Estimation Problems with Multiple Optima, Nondifferentiability, and Other Irregular Features

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Author Info
Dorsey, Robert E
Mayer, Walter J
Abstract

The genetic algorithm is examined as a method for solving optimization problems in econometric estimation. It does not restrict either the form or regulalrity of the objective function, allows a reasonbly large parameter space, and does not rely on a point-to-point search. The performance is evaluated through two sets of experiments on standard test problems as well as econometric problems from the literature. First, alternative genetic algorithms are contrasted that vary over mutation and crossover rates, population sizes, and other features. Second, the genetic algorithm is compared to Nelder-Mead simplex, simulated annealing, adaptive random search, and MSCORE.

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Publisher Info
Article provided by American Statistical Association in its journal Journal of Business and Economic Statistics.

Volume (Year): 13 (1995)
Issue (Month): 1 (January)
Pages: 53-66
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Handle: RePEc:bes:jnlbes:v:13:y:1995:i:1:p:53-66

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  1. Paul McNelis & John Duffy, 1998. "Approximating and Simulating the Stochastic Growth Model: Parameterized Expectations, Neural Networks, and the Genetic Algorithm," GE, Growth, Math methods 9804004, EconWPA, revised 04 May 1998. [Downloadable!]
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  2. Alicia Gazely & Jane Binner & Graham Kendall, 2004. "Co-evolution vs. Neural Networks; An Evaluation of UK Risky Money," Computing in Economics and Finance 2004 258, Society for Computational Economics. [Downloadable!]
  3. Markus Poschke, 2006. "The regulation of entry and aggregate productivity," Economics Working Papers ECO2006/21, European University Institute. [Downloadable!]
  4. Sarah Stolting, 2009. "International Trade and Growth: The Impact of Seletion and Imitation," Economics Working Papers ECO2009/21, European University Institute. [Downloadable!]
  5. Markus Poschke, 2007. "Employment Protection, Firm Selection, and Growth," IZA Discussion Papers 3164, Institute for the Study of Labor (IZA). [Downloadable!]
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  6. Christopher R. Knittel & Konstantinos Metaxoglou, 2008. "Estimation of Random Coefficient Demand Models: Challenges, Difficulties and Warnings," NBER Working Papers 14080, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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