A radial basis function artificial neural network test for neglected nonlinearity

Blake, Andrew P.; Kapetanios, George
December 2003
Econometrics Journal;Dec2003, Vol. 6 Issue 2, p357
Academic Journal
We propose a test for neglected nonlinearity that uses an alternative artificial neural network (ANN) specification to the one commonly used in the literature. We use radial basis functions for the ‘hidden layer’ with basis function centres and radii chosen from the sample data set and selected on the basis of an information criterion. The procedure is straightforward to implement and outperforms, in many cases, the ANN test proposed by and the analytic variation devised by .


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