Master of Science in Economics

Faculty / School

Faculty of Business Administration (FBA)


Department of Economics

Date of Submission



Dr. Mohammad Nishat, Institute of Business Administration, Karachi

Project Type

MSECO Research Project

Access Type

Restricted Access


Economics has inherited ideas from psychology and neuroscience to form a multidisciplinary subject ‘Neuroeconomics’. On the other hand, statistics, inspired by neuroscientific research, has embraced computational methods similar to neural network inside the human brain. We are at the center of a historic convergence among these subjects, aiming to understand how brain makes complex economic decisions and which model can better predict economic decisions. This paper explores the multidisciplinary research in economics, psychology, neuroscience and data science, with an attempt to demonstrate the application of neural network models in economic forecasting. The paper explores the latest methods in the field of artificial intelligence that are inspired by neural network models inside human brain. As demonstration, we have applied Long-Short Term Memory Model (LSTM) to forecast KSE-100 Index returns using non-parametric modelling.


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