Neural Network Solution to Economic Forecasting

Abstract

In recent years, neural networks have received an increasing amount of attention among macroeconomic forecasters because of their potential to detect and reproduce .linear and nonlinear relationships among a set of variables. Many attempts to apply ANN as a forecasting tool has been successful. This paper highlighted the application of Neural Network in economic forecasting. Back propagation neural Network are used to forecast the approximated time in years for a specified input cost or benefits. Different types of benefits and coasts are used in the training and testing phase. A better understanding of neural networks will help economists decide on the relevance of using these models