Working Paper BETA #2016-28

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Title : Forecasting with Neural Networks Models

Author(s) : Francis Bismans, Igor N. Litvine

Abstract : This paper deals with so-called feedforward neural network model which we consider from a statistical and econometric viewpoint. It was shown how this model can be estimated by maximum likelihood. Finally, we apply the ANN methodology to model demand for electricity in South Africa. The comparison of forecasts based on a linear and ANN model respectively shows the usefulness of the latter.

Key-words : Artificial neural networks (ANN), electricity consumption, forecasting, linear and non-linear models, recessions.

JEL Classification : C45, C53, E17, E27, Q43, Q47.