A simple extension of standard neural network models is introduced whi
ch provides a model for neural computations that involve both firing r
ates and firing correlations. Such an extension appears to be useful s
ince it has been shown that firing correlations play a significant com
putational role in many biological neural systems. Standard neural net
work models are only suitable for describing neural computations in te
rms of firing rates. The resulting extended neural network models are
still relatively simple, so that their computational power can be anal
ysed theoretically. We prove rigorous separation results, which show t
hat the use of firing correlations in addition to firing rates can dra
stically increase the computational power of a neural network. Further
more, one of our separation results also throws new light on a questio
n that involves just standard neural network models: we prove that the
gap between the computational power of high-order and first-order neu
ral nets is substantially larger than shown previously.