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Year 2021, Volume 13, Issue 1, 4 - 23, 03.09.2021
https://doi.org/10.33818/ier.854697

Abstract

References

  • Barro R.J. (1991) Economic Growth in a Cross Section of Countries. The Quarterly Journal of Economics 106(2):407-443.
  • Breiman L. (2001) Random Forests. Machine Learning 45(1):5-32.
  • Sala-i-Martin X.X. (1997) I Just Run Two Million Regressions. The American Economic Re- view 87(2):178-183.

Inflation and Inflation Uncertainty in Growth Model of Barro: An Application of Random Forest Model

Year 2021, Volume 13, Issue 1, 4 - 23, 03.09.2021
https://doi.org/10.33818/ier.854697

Abstract

One of the major problems of the empirical economists while building an economic model is the selection of variables which should be included in the true regression model. Conventional econometrics use several model selection criteria to determine the variables. Recent years' developments in Machine Learning (ML) approaches introduced an alternative way to select variables. In this paper, we have an application of ML to select variables to include for a nonlinear relationship between inflation and economic growth. Among ML methodologies, Random Forest approach is one of the most powerful to capture nonlinear relationships. Therefore, we applied RF and found that both high and low inflation can be the cause of low economic growth which is a major contribution of the paper to economic literature. Moreover, in the paper, as an outcome of RF there are other variables effecting economic growth with an order of importance.

References

  • Barro R.J. (1991) Economic Growth in a Cross Section of Countries. The Quarterly Journal of Economics 106(2):407-443.
  • Breiman L. (2001) Random Forests. Machine Learning 45(1):5-32.
  • Sala-i-Martin X.X. (1997) I Just Run Two Million Regressions. The American Economic Re- view 87(2):178-183.

Details

Primary Language English
Subjects Economics
Journal Section Articles
Authors

Houcine SENOUSSİ (Primary Author)
CY Tech-EISTI
France

Publication Date September 3, 2021
Published in Issue Year 2021, Volume 13, Issue 1

Cite

Bibtex @research article { ier854697, journal = {International Econometric Review}, issn = {1308-8793}, eissn = {1308-8815}, address = {Şairler Sokak, No:32/C, Gaziosmanpaşa, Ankara}, publisher = {Econometric Research Association}, year = {2021}, volume = {13}, pages = {4 - 23}, doi = {10.33818/ier.854697}, title = {Inflation and Inflation Uncertainty in Growth Model of Barro: An Application of Random Forest Model}, key = {cite}, author = {Senoussi, Houcine} }
APA Senoussi, H. (2021). Inflation and Inflation Uncertainty in Growth Model of Barro: An Application of Random Forest Model . International Econometric Review , 13 (1) , 4-23 . DOI: 10.33818/ier.854697
MLA Senoussi, H. "Inflation and Inflation Uncertainty in Growth Model of Barro: An Application of Random Forest Model" . International Econometric Review 13 (2021 ): 4-23 <https://dergipark.org.tr/en/pub/ier/issue/64789/854697>
Chicago Senoussi, H. "Inflation and Inflation Uncertainty in Growth Model of Barro: An Application of Random Forest Model". International Econometric Review 13 (2021 ): 4-23
RIS TY - JOUR T1 - Inflation and Inflation Uncertainty in Growth Model of Barro: An Application of Random Forest Model AU - Houcine Senoussi Y1 - 2021 PY - 2021 N1 - doi: 10.33818/ier.854697 DO - 10.33818/ier.854697 T2 - International Econometric Review JF - Journal JO - JOR SP - 4 EP - 23 VL - 13 IS - 1 SN - 1308-8793-1308-8815 M3 - doi: 10.33818/ier.854697 UR - https://doi.org/10.33818/ier.854697 Y2 - 2021 ER -
EndNote %0 International Econometric Review Inflation and Inflation Uncertainty in Growth Model of Barro: An Application of Random Forest Model %A Houcine Senoussi %T Inflation and Inflation Uncertainty in Growth Model of Barro: An Application of Random Forest Model %D 2021 %J International Econometric Review %P 1308-8793-1308-8815 %V 13 %N 1 %R doi: 10.33818/ier.854697 %U 10.33818/ier.854697
ISNAD Senoussi, Houcine . "Inflation and Inflation Uncertainty in Growth Model of Barro: An Application of Random Forest Model". International Econometric Review 13 / 1 (September 2021): 4-23 . https://doi.org/10.33818/ier.854697
AMA Senoussi H. Inflation and Inflation Uncertainty in Growth Model of Barro: An Application of Random Forest Model. IER. 2021; 13(1): 4-23.
Vancouver Senoussi H. Inflation and Inflation Uncertainty in Growth Model of Barro: An Application of Random Forest Model. International Econometric Review. 2021; 13(1): 4-23.
IEEE H. Senoussi , "Inflation and Inflation Uncertainty in Growth Model of Barro: An Application of Random Forest Model", International Econometric Review, vol. 13, no. 1, pp. 4-23, Sep. 2021, doi:10.33818/ier.854697