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Recognizing Investment Opportunities at the Onset of Recoveries

Author

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  • Guido Fioretti

    (University of Stuttgart and ICER)

Abstract

Investment decision-making is modeled by means of a Kohonen neural net, where neurons represent firms. This is done in order to model investments in novel fields of economic activity, that according to this model are carried out when firms recognize the emergence of a new technological pattern. Combination of the equations of Kohonen model neuron with macroeconomic relationships yields disaggregated accelerator equations with flexible coefficients, that in the aggregate and fixed- coefficients case boil down to traditional accelerator equations. A simulation tests the model in a situation that is remindful of the very beginning of economic recoveries.

Suggested Citation

  • Guido Fioretti, 2002. "Recognizing Investment Opportunities at the Onset of Recoveries," Macroeconomics 0207008, EconWPA.
  • Handle: RePEc:wpa:wuwpma:0207008
    Note: Type of Document - PDF; prepared on IBM PC - PC-TEX/UNIX Sparc TeX; pages: 30; figures: included. Author's homepage is at
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    References listed on IDEAS

    as
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    Cited by:

    1. Guido Fioretti, 2005. "The Production Function," Papers physics/0511191, arXiv.org.
    2. Fioretti, Guido, 2007. "The production function," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 374(2), pages 707-714.

    More about this item

    Keywords

    Accelerator; Investment; Neural Nets; Cognition;

    JEL classification:

    • C45 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Neural Networks and Related Topics
    • D29 - Microeconomics - - Production and Organizations - - - Other
    • E27 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Forecasting and Simulation: Models and Applications
    • L29 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Other
    • 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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