Genetic Algorithms vs. Artificial Neural Networks in Economic Forecasting Process

Abstract

This paper aims to describe the implementa-tion of a neural network and a genetic algorithm system in order to forecast certain economic indicators of a free market economy. In a free market economy forecasting process precedes the economic planning (a management function), providing important information for the result of the last process. Forecasting represents a starting point in setting of target for a firm, an organization or even a branch of the economy. Thus, the forecasting method used can influence in a significant mode the evolution of an entity. In the following we will describe the forecasting of an economic indicator using two intelligent systems. The difference between the results obtained by this two systems are described in chapter IV.

Keywords

• forecasting
• neural networks
• genetic algorithms
• artificial intelligence
• random
• population
• offsprings
• reproduction
• mutation