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The Investment Acceleration Principle Revisited by Means of a Neural Net


  • Guido Fioretti

    (University of Stuttgart and ICER)


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, EconWPA.
  • Handle: RePEc:wpa:wuwpco:0207002
    Note: Type of Document - PDF; pages: 20; figures: included. Author's homepage is at

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    References listed on IDEAS

    1. Jacques Mairesse & Bronwyn H. Hall & Benoît Mulkay, 1999. "Firm-Level Investment in France and the United States: An Exploration of What We Have Learned in Twenty Years," Annals of Economics and Statistics, GENES, issue 55-56, pages 27-67.
    2. Bean, Charles R, 1981. "An Econometric Model of Manufacturing Investment in the UK," Economic Journal, Royal Economic Society, vol. 91(361), pages 106-121, March.
    3. Baxter, Marianne, 1996. "Are Consumer Durables Important for Business Cycles?," The Review of Economics and Statistics, MIT Press, vol. 78(1), pages 147-155, February.
    4. Kumaraswamy Velupillai, 1999. "Non-maximum Disequilibrium Macrodynamics," Economic Systems Research, Taylor & Francis Journals, vol. 11(2), pages 113-126.
    5. Bigsten, Arne, et al, 1999. " Investment in Africa's Manufacturing Sector: A Four Country Panel Data Analysis," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(4), pages 489-512, November.
    6. Lucas, Robert E, Jr, 1975. "An Equilibrium Model of the Business Cycle," Journal of Political Economy, University of Chicago Press, vol. 83(6), pages 1113-1144, December.
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    Cited by:

    1. Guido Fioretti, 2005. "The Production Function," Papers physics/0511191,
    2. Fioretti, Guido, 2006. "Recognising investment opportunities at the onset of recoveries," Research in Economics, Elsevier, vol. 60(2), pages 69-84, June.
    3. Fioretti, Guido, 2007. "The production function," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 374(2), pages 707-714.

    More about this item


    Accelerator; Investment; Self-Organization; Neural Nets;

    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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