Functional search in economics using genetic programming

This paper discusses economic applications of a recently developed artificial intelligence technique-Koza's genetic programming (GP). GP is an evolutionary search method related to genetic algorithms. In GP, populations of potential solutions consist of executable computer algorithms, rather than coded strings. The paper provides an overview of how GP works, and illustrates with two applications: solving for the policy function in a simple optimal growth model, and estimating an unusual regression function. Results suggest that the GP search method can be an interesting and effective tool for economists.