Abstract
In this paper we consider the use of fuzzy modelling in the context of econometric analysis of both time-series and cross-section data. We discuss and demonstrate a semi-parametric methodology for model identification and estimation that is based on the Fuzzy c-Means algorithm that is widely used in the context of pattern recognition, and the Takagi-Sugeno approach to modelling fuzzy systems. This methodology is exceptionally flexible and provides a computationally tractable method of dealing with non-linear models in high dimensions. In this respect it has distinct theoretical advantages over non-parametric kernel regression, and we find that these advantages also hold empirically in terms of goodness-of-fit in a selection of economic applications.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
