Evaluating the performance of a EuroDivisia index using artificial intelligence techniques

  • Jane M. Binner
  • Alicia M. Gazely
  • Graham Kendall
Article

Abstract

This paper compares two methods to predict inflation rates in Europe. One method uses a standard back propagation neural network and the other uses an evolutionary approach, where the network weights and the network architecture are evolved. Results indicate that back propagation produces superior results. However, the evolving network still produces reasonable results with the advantage that the experimental set-up is minimal. Also of interest is the fact that the Divisia measure of money is superior as a predictive tool over simple sum.

Keywords

EuroDivisia Divisia money inflation evolutionary strategies neural networks 

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Copyright information

© Institute of Automation, Chinese Academy of Sciences 2008

Authors and Affiliations

  • Jane M. Binner
    • 1
  • Alicia M. Gazely
    • 2
  • Graham Kendall
    • 3
  1. 1.Economics and Strategy Group, Aston Business SchoolAston UniversityBirminghamUK
  2. 2.Nottingham Business SchoolNottingham Trent UniversityNottinghamUK
  3. 3.School of Computer Science & ITUniversity of NottinghamNottinghamUK

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