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Implementing Convex Optimization in R: Two Econometric Examples

Zhan Gao, Zhentao Shi

arXiv 27 Jun 2018 · Statistics — Computation · publishedComputational Economics (2020)

arXiv:1806.10423 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Economists specify high-dimensional models to address heterogeneity in empirical studies with complex big data. Estimation of these models calls for optimization techniques to handle a large number of parameters. Convex problems can be effectively executed in modern statistical programming languages. We complement Koenker and Mizera (2014)'s work on numerical implementation of convex optimization, with focus on high-dimensional econometric estimators. Combining R and the convex solver MOSEK achieves faster speed and equivalent accuracy, demonstrated by examples from Su, Shi, and Phillips (2016) and Shi (2016). Robust performance of convex optimization is witnessed cross platforms. The convenience and reliability of convex optimization in R make it easy to turn new ideas into prototypes.

Citation extraction

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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Shi, Z (2016) Econometric estimation with high-dimensional moment equalities self0.9416383%
2Su, L., Z. Shi, and P. C. Phillips (2016) Identifying latent structures in panel data0.92810480%
3Chen, W., X. Chen, C.-T. Hsieh, and Z. Song (2019) A forensic examination of china's national accounts0.87492100%
4Koenker, R. and I. Mizera (2014) Convex optimization in R0.81142100%
5Fu, A., N. Balasubramanian, and S. Boyd (2019) CVXR: An R package for disciplined convex optimization0.51121100%
6Domahidi, A., E. Chu, and S. Boyd (2013) ECOS: An SOCP solver for embedded systems0.40511100%
7Bajari, P., D. Nekipelov, S. P. Ryan, and M. Yang (2015) Machine learning methods for demand estimation0.40511100%
8Bonhomme, S. and E. Manresa (2015) Grouped patterns of heterogeneity in panel data0.40511100%
9Grant, M. and S. Boyd (2014) CVX: Matlab software for disciplined convex programming, version 2.10.40511100%
10Diamond, S. and S. Boyd (2016) CVXPY: A Python-embedded modeling language for convex optimization0.40511100%

Showing the top 10 of 25 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1$_2$-Relaxation: With Applications to Forecast Combination and Portfolio Analysis0.40511
2Spectral and Post-Spectral Estimators for Grouped Panel Data Models0.40511