Recognizing Investment Opportunities at the Onset of Recoveries

Guido Fioretti

Macroeconomics from EconWPA

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.

Keywords: Accelerator; Investment; Neural Nets; Cognition (search for similar items in EconPapers)
JEL-codes: C45 D29 E27 L29 O30 O49 (search for similar items in EconPapers)
Date: 2002-08-18
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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Related works:
Working Paper: Recognizing Investment Opportunities at the Onset of Recoveries
Journal Article: Recognising investment opportunities at the onset of recoveries (2006)
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpma:0207008

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