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NBER Working Papers · September 30, 2026 · On the brief until October 14, 2026

Deep Learning as a Projection Method for Solving Economic Models -- by Kenneth L. Judd, Karl Schmedders

EconomicsData Science
THE AI ANGLE
Serving as an adaptive projection tool for solving economic models

Economists Kenneth Judd and Karl Schmedders classified neural-network solvers as least-squares projection methods with adaptive nonlinear parameterizations. Their paper reframes deep learning as an addition to classical numerical methods rather than an entirely separate framework. This places neural networks alongside linear-basis and sparse-grid methods within a single modeling toolkit.

Summary written by AI Business Lens with an AI model from the article at nber.org. It is not the article, and the publisher has not reviewed it. For publishers.

THE TEACHING ANGLE
Students can examine whether trained neural networks offer real computational advantages over simpler linear-basis methods in low and moderate dimensions.

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