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Understanding the business cycle is crucial for building economic stability, guiding business planning, and informing investment decisions. The business cycle refers to the recurring pattern of expansion and contraction in economic activity…

Machine Learning · Computer Science 2024-06-17 Elvys Linhares Pontes , Mohamed Benjannet , Raymond Yung

We investigate the effectiveness of different machine learning methodologies in predicting economic cycles. We identify the deep learning methodology of Bi-LSTM with Autoencoder as the most accurate model to forecast the beginning and end…

General Economics · Economics 2021-07-26 Zihao Wang , Kun Li , Steve Q. Xia , Hongfu Liu

Predicting the economy's short-term dynamics -- a vital input to economic agents' decision-making process -- often uses lagged indicators in linear models. This is typically sufficient during normal times but could prove inadequate during…

General Economics · Economics 2024-05-21 James T. E. Chapman , Ajit Desai

Sovereign credit ratings summarize the creditworthiness of countries. These ratings have a large influence on the economy and the yields at which governments can issue new debt. This paper investigates the use of a Multilayer Perceptron…

Statistical Finance · Quantitative Finance 2021-07-16 Bart H. L. Overes , Michel van der Wel

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

Accurate prediction of crop yield before harvest is of great importance for crop logistics, market planning, and food distribution around the world. Yield prediction requires monitoring of phenological and climatic characteristics over…

Machine Learning · Computer Science 2023-02-08 Florian Huber , Artem Yushchenko , Benedikt Stratmann , Volker Steinhage

In the world of advice and financial planning, there is seldom one right answer. While traditional algorithms have been successful in solving linear problems, its success often depends on choosing the right features from a dataset, which…

Statistical Finance · Quantitative Finance 2021-10-26 Shareefuddin Mohammed , Rusty Bealer , Jason Cohen

Accurately predicting the prices of financial time series is essential and challenging for the financial sector. Owing to recent advancements in deep learning techniques, deep learning models are gradually replacing traditional statistical…

Statistical Finance · Quantitative Finance 2023-09-29 Cheng Zhang , Nilam Nur Amir Sjarif , Roslina Ibrahim

Determining the poverty levels of various regions throughout the world is crucial in identifying interventions for poverty reduction initiatives and directing resources fairly. However, reliable data on global economic livelihoods is hard…

Computer Vision and Pattern Recognition · Computer Science 2021-12-02 Varun Chitturi , Zaid Nabulsi

Market economy closely connects aspects to all walks of life. The stock forecast is one of task among studies on the market economy. However, information on markets economy contains a lot of noise and uncertainties, which lead economy…

Machine Learning · Computer Science 2019-09-23 Jialin Liu , Chih-Min Lin , Fei Chao

Forecasting high-dimensional time series plays a crucial role in many applications such as demand forecasting and financial predictions. Modern datasets can have millions of correlated time-series that evolve together, i.e they are…

Machine Learning · Statistics 2019-10-29 Rajat Sen , Hsiang-Fu Yu , Inderjit Dhillon

This study examines the relationship between GDP growth and Gross Fixed Capital Formation (GFCF) across developed economies (G7, EU-15, OECD) and emerging markets (BRICS). We integrate Random Forest machine learning (non-linear regression)…

General Economics · Economics 2025-04-30 Alina Landowska , Robert A. Kłopotek , Dariusz Filip , Konrad Raczkowski

Recent results in the literature indicate that artificial neural networks (ANNs) can outperform the dynamic factor model (DFM) in terms of the accuracy of GDP nowcasts. Compared to the DFM, the performance advantage of these highly…

Econometrics · Economics 2024-05-27 Kristóf Németh , Dániel Hadházi

Deep learning provides powerful methods to impute structured information from large-scale, unstructured text and image datasets. For example, economists might wish to detect the presence of economic activity in satellite images, or to…

General Economics · Economics 2024-11-14 Melissa Dell

We show that pooling countries across a panel dimension to macroeconomic data can improve by a statistically significant margin the generalization ability of structural, reduced form, and machine learning (ML) methods to produce…

General Economics · Economics 2022-03-15 Cameron Fen , Samir Undavia

Country instability is a global issue, with unpredictably high levels of instability thwarting socio-economic growth and possibly causing a slew of negative consequences. As a result, uncertainty prediction models for a country are becoming…

Artificial Intelligence · Computer Science 2024-11-12 Adam Zebrowski , Haithem Afli

Development and growth are complex and tumultuous processes. Modern economic growth theories identify some key determinants of economic growth. However, the relative importance of the determinants remains unknown, and additional variables…

General Economics · Economics 2018-12-05 Angelica Sbardella , Emanuele Pugliese , Andrea Zaccaria , Pasquale Scaramozzino

Research and development (R&D) of countries play a major role in a long-term development of the economy. We measure the R&D efficiency of all 28 member countries of the European Union in the years 2008--2014. Super-efficient data…

Applications · Statistics 2024-05-09 Vladimír Holý , Karel Šafr

A two-component model for the evolution of real GDP per capita in the USA is presented and tested. The first component of the GDP growth rate represents an economic trend and is inversely proportional to the attained level of real GDP per…

General Finance · Quantitative Finance 2008-12-02 Ivan O. Kitov , Oleg I. Kitov , Svetlana A. Dolinskaya

Our fast-paced digital economy shaped by global competition requires increased data-driven decision-making based on artificial intelligence (AI) and machine learning (ML). The benefits of deep learning (DL) are manifold, but it comes with…

Machine Learning · Computer Science 2025-06-03 Marc Schmitt