Applications of Artificial Neural Networks in Economics and Finance

Abstract

Artificial neural networks (ANNs) are a powerful technique for multivariate dependence analysis. Originally inspired by neuroscience, ANNs are becoming an increasingly attractive analytic tool for applications in the area of economics and finance due to the flexible solutions they offer. The purpose of this chapter is to present such important applications with an emphasis on recent research trends. The contributions are grouped as follows: ANNs (1) for prediction, (2) for classification, and (3) for modelling. The chapter concludes with the future trends in the ANNs research in economics and finance.