AI

Artificial Neural Networks to Solve Economic Models

Introduction In a previous post, I discussed why Artificial Neural Networks (ANN) are very popular tools: (i) they can approximate a very large set of functions (ii) they work well in high-dimensional spaces (iii) we can train them efficiently using gradient descent (even better if you have a GPU). In the application part, I showed how to use them in practice using Julia and Flux.jl with two toy examples.

Artificial Neural Networks as universal function approximators

Introduction Artificial Neural networks (ANN) are very trendy at the moment, and rightly so. They are being used everywhere in big tech companies. For instance, when you use Google translate, or when recommandations appear on your Netflix feed, complex artificial neural networks are being used behind the scene. Behind the success of Alpha Go at the game of Go against Lee Sedol, an ANN was used to identify the next best move.