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Using Neural Networks to Build Pseudo Panels

Patrice Gaubert

European Journal of Economic and Social Systems, 2004, vol. 17, issue 1-2, 63-84

Abstract: For many theoretical micro-economic models, longitudinal data is a pre-requisite for correct empirical validation. In the absence of true panels we can use pseudo panels, ones where the estimators obtained display the same properties as if a real panel had been used. The present text shows that using a neural network to build a pseudo panel offers many advantages over the traditional method, especially since by acting in this manner (and thanks to the significant homogeneity of the classes obtained thusly) we avoid major measurement errors.

Keywords: Panels; Pseudo Panels; Kohonen Map; Consumption Function (search for similar items in EconPapers)
JEL-codes: C33 (search for similar items in EconPapers)
Date: 2004
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