GENETIC PROGRAMMING FOR ECONOMIC MODELING
John R. Koza · 1994
The problem of finding an econometric model expressing the mathematical relationship between empirically observed econometric variables can be viewed as a search of the space of possible computer programs for a program that produces the desired output for given inputs. This computer program can be found via the recently developed genetic programming paradigm which breeds populations of computer programs in a Darwinian competition using genetic operations such as fitness proportionate reproduction and crossover (sexual recombination). In this paper, we rediscover the well-known non-linear "exchange equation" P= MV Q relating the money supply, price level, gross national product, and velocity of money in an economy. 1. INTRODUCTION The problem of discovering the mathematical relationship between the empirically observed variables measuring a system is an important problem in economics and other areas of science (Langley et. al. 1987). In practice, the observed data may be noisy and the...