Genetic programming in economic modelling

Typically, economists develop models by first selecting a model structure based on theoretical considerations and equilibrium conditions, followed by parameter estimation from available data. As more and more data become available about economic processes, the question arises whether it is possible to obtain models in which "data speak for themselves", where both the model structure and the parameter values are identified directly from the data. In this paper, we discuss how genetic programming might be used for this purpose. We propose a framework to formulate a genetic programming search for suitable economic models. We also study a simple case and discuss future directions of research for developing the genetic programming methodology for economic modelling.