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This script offers an implementation-oriented introduction to deep learning methods for solving and estimating high-dimensional dynamic stochastic models in economics and finance. Its starting point is the curse of dimensionality:…

General Economics · Economics 2026-05-15 Simon Scheidegger

We develop a methodology that utilizes deep learning to simultaneously solve and estimate canonical continuous-time general equilibrium models in financial economics. We illustrate our method in two examples: (1) industrial dynamics of…

Computational Finance · Quantitative Finance 2023-05-18 Benjamin Fan , Edward Qiao , Anran Jiao , Zhouzhou Gu , Wenhao Li , Lu Lu

We propose and compare new global solution algorithms for continuous time heterogeneous agent economies with aggregate shocks. First, we approximate the agent distribution so that equilibrium in the economy can be characterized by a high,…

Optimization and Control · Mathematics 2024-06-21 Zhouzhou Gu , Mathieu Laurière , Sebastian Merkel , Jonathan Payne

Physics informed neural networks (PINNs) have emerged as a powerful tool to provide robust and accurate approximations of solutions to partial differential equations (PDEs). However, PINNs face serious difficulties and challenges when…

Machine Learning · Computer Science 2023-07-11 Rajat Arora

This paper presents a partial differential equation framework for deep residual neural networks and for the associated learning problem. This is done by carrying out the continuum limits of neural networks with respect to width and depth.…

Analysis of PDEs · Mathematics 2020-08-25 Hailiang Liu , Peter Markowich

To sidestep the curse of dimensionality when computing solutions to Hamilton-Jacobi-Bellman partial differential equations (HJB PDE), we propose an algorithm that leverages a neural network to approximate the value function. We show that…

Machine Learning · Computer Science 2017-03-28 Frank Jiang , Glen Chou , Mo Chen , Claire J. Tomlin

Real-time simulation of elastic structures is essential in many applications, from computer-guided surgical interventions to interactive design in mechanical engineering. The Finite Element Method is often used as the numerical method of…

Machine Learning · Computer Science 2021-09-21 Alban Odot , Ryadh Haferssas , Stéphane Cotin

Computing optimal feedback controls for nonlinear systems generally requires solving Hamilton-Jacobi-Bellman (HJB) equations, which are notoriously difficult when the state dimension is large. Existing strategies for high-dimensional…

Optimization and Control · Mathematics 2021-04-09 Tenavi Nakamura-Zimmerer , Qi Gong , Wei Kang

The solution to partial differential equations using deep learning approaches has shown promising results for several classes of initial and boundary-value problems. However, their ability to surpass, particularly in terms of accuracy,…

Numerical Analysis · Mathematics 2023-08-23 Ziad Aldirany , Régis Cottereau , Marc Laforest , Serge Prudhomme

Physics-informed neural networks (PINNs) show great advantages in solving partial differential equations. In this paper, we for the first time propose to study conformable time fractional diffusion equations by using PINNs. By solving the…

Numerical Analysis · Mathematics 2021-08-18 Yinlin Ye , Yajing Li , Hongtao Fan , Xinyi Liu , Hongbing Zhang

We propose a physics-informed neural networks (PINNs) framework to solve the infinite-horizon optimal control problem of nonlinear systems. In particular, since PINNs are generally able to solve a class of partial differential equations…

Systems and Control · Electrical Eng. & Systems 2025-05-29 Filippos Fotiadis , Kyriakos G. Vamvoudakis

This paper treats the Merton problem how to invest in safe assets and risky assets to maximize an investor's utility, given by investment opportunities modeled by a $d$-dimensional state process. The problem is represented by a partial…

Portfolio Management · Quantitative Finance 2021-02-01 Daeyung Gim , Hyungbin Park

This paper integrates deep neural networks (DNNs) into structural economic models to increase flexibility and capture rich heterogeneity while preserving interpretability. Economic structure and machine learning are complements in empirical…

Econometrics · Economics 2025-04-28 Max H. Farrell , Tengyuan Liang , Sanjog Misra

Contemporary deep learning based solution methods used to compute approximate equilibria of high-dimensional dynamic stochastic economic models are often faced with two pain points. The first problem is that the loss function typically…

General Economics · Economics 2023-03-28 Marlon Azinovic , Jan Žemlička

We develop a deep learning algorithm for constructing globally accurate approximations to functional rational expectations equilibria of dynamic stochastic economies in the sequence space. We use deep neural networks to parameterize key…

General Economics · Economics 2026-03-17 Marlon Azinovic-Yang , Jan Žemlička

In this paper, inspired by the multigrid method, we propose a multi-level deep framework for deep solvers. Overall, it divides the entire training process into different levels of training. At each level of training, an adaptive sampling…

Numerical Analysis · Mathematics 2026-02-23 Yu Yang , Qiaolin He

Many types of physics-informed neural network models have been proposed in recent years as approaches for learning solutions to differential equations. When a particular task requires solving a differential equation at multiple…

Machine Learning · Computer Science 2021-11-02 Filipe de Avila Belbute-Peres , Yi-fan Chen , Fei Sha

The framework of deep operator network (DeepONet) has been widely exploited thanks to its capability of solving high dimensional partial differential equations. In this paper, we incorporate DeepONet with a recently developed policy…

Optimization and Control · Mathematics 2024-06-18 Jae Yong Lee , Yeoneung Kim

We propose a new class of implicit networks, the multiscale deep equilibrium model (MDEQ), suited to large-scale and highly hierarchical pattern recognition domains. An MDEQ directly solves for and backpropagates through the equilibrium…

Machine Learning · Computer Science 2020-11-25 Shaojie Bai , Vladlen Koltun , J. Zico Kolter

This paper studies deep neural networks for solving extremely large linear systems arising from highdimensional problems. Because of the curse of dimensionality, it is expensive to store both the solution and right-hand side vector in such…

Numerical Analysis · Mathematics 2023-03-07 Yiqi Gu , Michael K. Ng
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