Copyright © 2006 Elsevier B.V. All rights reserved.
Fuzzy modelling and estimation of economic relationships
Available online 4 May 2006.
References and further reading may be available for this article. To view references and further reading you must purchase this article.
Abstract
A modelling strategy based on the application of fuzzy logic is shown to provide a powerful and efficient method for the estimation of non-linear and linear economic relationships. The procedure is particularly suitable for the estimation of ill-defined systems in which there is considerable uncertainty about the nature and range of key input variables. In addition, no prior knowledge is required about the form of the underlying relationships, and trend, cyclical and irregular components of the model can all be estimated in a single pass. The potential benefits of the fuzzy logic approach are illustrated using a model of real-wage behaviour in the United States over the period 1960–1995. The results suggest that the relationships in the model are basically non-linear.
Keywords: Fuzzy logic; Economic modelling; Uncertainty; Non-linear estimation; Unemployment; Real wages
Article Outline
- 1. Introduction
- 2. Fuzzy systems theory
- 3. Fuzzy model identification from economic data
- 4. An application to the real wage-unemployment relationship
- 4.1. A fuzzy model of the real wage-unemployment relationship
- 4.2. Preliminary data and estimation considerations
- 4.3. A linear estimate
- 4.4. Estimates of the fuzzy model
- 5. Summary and conclusions
- Acknowledgements
- References







E-mail Article
Add to my Quick Links

Cited By in Scopus (1)






