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The Investment Acceleration Principle Revisited by Means of a Neural Net

Author

Listed:
  • Guido Fioretti

    (University of Stuttgart and ICER)

Abstract

The investment acceleration principle is a heuristic for modeling investment time series out of consumption time series. The model presented herein develops a disaggregated accelerator equation whose coefficients are the weights of a Kohonen neural net that represents firms' decision-making. According to this model, investments take place when managers recognize emerging technological patterns. Furthermore, a technique borrowed from the theory of self-organizing systems is used in order to disentangle innovation-driven investments from plant- replication investments.

Suggested Citation

  • Guido Fioretti, 2002. "The Investment Acceleration Principle Revisited by Means of a Neural Net," Computational Economics 0207002, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpco:0207002
    Note: Type of Document - PDF; pages: 20; figures: included. Author's homepage is at
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/comp/papers/0207/0207002.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Fioretti, Guido, 2006. "Recognising investment opportunities at the onset of recoveries," Research in Economics, Elsevier, vol. 60(2), pages 69-84, June.
    2. Fioretti, Guido, 2007. "The production function," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 374(2), pages 707-714.

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    More about this item

    Keywords

    Accelerator; Investment; Self-Organization; Neural Nets;
    All these keywords.

    JEL classification:

    • C49 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Other
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D29 - Microeconomics - - Production and Organizations - - - Other
    • D89 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Other
    • E27 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Forecasting and Simulation: Models and Applications
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O49 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Other

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