Improving External Validity of Machine Learning, Reduced Form, and Structural Macroeconomic Models using Panel Data

2021 ◽  
Author(s):  
Cameron Fen ◽  
Samir Undavia
Author(s):  
Dalibor Stevanovic

AbstractStandard time varying parameter (TVP) models usually assume independent stochastic processes. In this paper, I show that the number of underlying sources of parameters’ time variation is likely to be small, and provide empirical evidence for factor structure amongst TVPs of popular macroeconomic models. In order to test for the presence of low dimension sources of time variation in parameters and estimate their magnitudes, I develop the factor time varying parameter (Factor-TVP) framework and apply it to [Primiceri, G.E. (2005), “Time Varying Structural Vector Autoregressions and Monetary Policy,”


Author(s):  
R. Kyle Martin ◽  
Solvejg Wastvedt ◽  
Ayoosh Pareek ◽  
Andreas Persson ◽  
Håvard Visnes ◽  
...  

Abstract Purpose External validation of machine learning predictive models is achieved through evaluation of model performance on different groups of patients than were used for algorithm development. This important step is uncommonly performed, inhibiting clinical translation of newly developed models. Machine learning analysis of the Norwegian Knee Ligament Register (NKLR) recently led to the development of a tool capable of estimating the risk of anterior cruciate ligament (ACL) revision (https://swastvedt.shinyapps.io/calculator_rev/). The purpose of this study was to determine the external validity of the NKLR model by assessing algorithm performance when applied to patients from the Danish Knee Ligament Registry (DKLR). Methods The primary outcome measure of the NKLR model was probability of revision ACL reconstruction within 1, 2, and/or 5 years. For external validation, all DKLR patients with complete data for the five variables required for NKLR prediction were included. The five variables included graft choice, femur fixation device, KOOS QOL score at surgery, years from injury to surgery, and age at surgery. Predicted revision probabilities were calculated for all DKLR patients. The model performance was assessed using the same metrics as the NKLR study: concordance and calibration. Results In total, 10,922 DKLR patients were included for analysis. Average follow-up time or time-to-revision was 8.4 (± 4.3) years and overall revision rate was 6.9%. Surgical technique trends (i.e., graft choice and fixation devices) and injury characteristics (i.e., concomitant meniscus and cartilage pathology) were dissimilar between registries. The model produced similar concordance when applied to the DKLR population compared to the original NKLR test data (DKLR: 0.68; NKLR: 0.68–0.69). Calibration was poorer for the DKLR population at one and five years post primary surgery but similar to the NKLR at two years. Conclusion The NKLR machine learning algorithm demonstrated similar performance when applied to patients from the DKLR, suggesting that it is valid for application outside of the initial patient population. This represents the first machine learning model for predicting revision ACL reconstruction that has been externally validated. Clinicians can use this in-clinic calculator to estimate revision risk at a patient specific level when discussing outcome expectations pre-operatively. While encouraging, it should be noted that the performance of the model on patients undergoing ACL reconstruction outside of Scandinavia remains unknown. Level of evidence III.


2022 ◽  
Author(s):  
Lucio Laureti ◽  
Costantiello Alberto ◽  
Marco Maria Matarrese ◽  
Angelo Leogrande

Abstract In this article we evaluate the determinants of the Employment in Innovative Enterprises in Europe. We use data from the European Innovation Scoreboard of the European Commission for 36 countries in the period 2000-2019 with Panel Data with Fixed Effects, Panel Data with Random Effects, Dynamic Panel, WLS and Pooled OLS. We found that the “Employment in Innovative Enterprises in Europe” is positively associated with “Broadband Penetration in Europe”, “Foreign Controlled Enterprises Share of Value Added”, “Innovation Index”, “Medium and High-Tech Product Exports” and negatively associated to “Basic School Entrepreneurial Education and Training”, “International Co-Publications”, and “Marketing or Organizational Innovators”. Secondly, we perform a cluster analysis with the k-Means algorithm optimized with the Silhouette Coefficient and we found the presence of four different clusters. Finally, we perform a comparison among eight different machine learning algorithms to predict the level of “Employment in Innovative Enterprises” in Europe and we found that the Linear Regression is the best predictor.


2021 ◽  
Author(s):  
Ekaterina Dmitrievna Myagotina ◽  
Ilona Vladimirovna Tregub

Nowadays analysis of various econometric models is used to study a significant amount of updated statistical information and find out relationships between statistical economic indicators, that were not investigated earlier. Main idea of investigation in this research work — to find out whether factors influence on the GRP, Consumption, Profit of the organizations and Investments or the model is outdated and non-applicable nowadays. The results obtained in the framework of this research will give us understanding changing which factors (exogeneous variables) — for example, increasing or decreasing credit and deposit rates, tax rates will rise national income, consumer expenditure, investment and operating surplus and, as a result, will accelerate economic development of the Russian Federation. The purpose is to evaluate whether the Menges model which includes all the indicators mentioned as dependent variables is applicable in the modern conditions of the Central Federal District in Russia or not and to find out whether there are other factors which also have an impact on endogenous variables. The object — a set of the panel data of economic statistical information of the Central Federal District in Russia (2008–2013). The subject — the reduced form of Menges model including GRP, Consumption, Profit of the organizations and Net Investments. According to our research, it is reasonable enough to increase the volume of industrial production in order to increase GRP both economically and with the help of the Menges econometric model. Besides that, it is also reasonable to increase the volume of industrial production in order to get a higher cost of investment.


2009 ◽  
Vol 58 (1) ◽  
pp. 27-42 ◽  
Author(s):  
Herman R.J. Vollebergh ◽  
Bertrand Melenberg ◽  
Elbert Dijkgraaf
Keyword(s):  

Energies ◽  
2021 ◽  
Vol 14 (10) ◽  
pp. 2775
Author(s):  
Florian Marcel Nuţă ◽  
Alina Cristina Nuţă ◽  
Cristina Gabriela Zamfir ◽  
Stefan-Mihai Petrea ◽  
Dan Munteanu ◽  
...  

The work at hand assesses several driving factors of carbon emissions in terms of urbanization and energy-related parameters on a panel of emerging European economies, between 1990 and 2015. The use of machine learning algorithms and panel data analysis offered the possibility to determine the importance of the input variables by applying three algorithms (Random forest, XGBoost, and AdaBoost) and then by modeling the urbanization and the impact of energy intensity on the carbon emissions. The empirical results confirm the relationship between urbanization and energy intensity on CO2 emissions. The findings emphasize that separate components of energy consumption affect carbon emissions and, therefore, a transition toward renewable sources for energy needs is desirable. The models from the current study confirm previous studies’ observations made for other countries and regions. Urbanization, as a process, has an influence on the carbon emissions more than the actual urban regions do, confirming that all the activities carried out as urbanization efforts are more harmful than the resulted urban area. It is proper to say that the urban areas tend to embrace modern, more green technologies but the road to achieve environmentally friendly urban areas is accompanied by less environmentally friendly industries (such as the cement industry) and a high consumption of nonrenewable energy.


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