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Random Forest Estimation of the Ordered Choice Model

Michael Lechner, Gabriel Okasa

arXiv 4 Jul 2019 · Econometrics

arXiv:1907.02436 · PDF · Extracted main text

Abstract

In this paper we develop a new machine learning estimator for ordered choice models based on the random forest. The proposed Ordered Forest flexibly estimates the conditional choice probabilities while taking the ordering information explicitly into account. In addition to common machine learning estimators, it enables the estimation of marginal effects as well as conducting inference and thus provides the same output as classical econometric estimators. An extensive simulation study reveals a good predictive performance, particularly in settings with non-linearities and near-multicollinearity. An empirical application contrasts the estimation of marginal effects and their standard errors with an ordered logit model. A software implementation of the Ordered Forest is provided both in R and Python in the package orf available on CRAN and PyPI, respectively.

Citation extraction

68
references
140
in-text mentions
68
distinct cited
5
self-citations
15,192
main-text words

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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
1Wager, Stefan, Athey, Susan (2018) Estimation and Inference of Heterogeneous Treatment Effects using Random Forests1.000125100%
2Lechner, Michael (2018) Modified Causal Forests for Estimating Heterogeneous Causal Effects self1.000114100%
3Breiman, L (2001) Random Forests1.00074100%
4Hornung, Roman (2019) Ordinal Forests0.97112392%
5Hothorn, Torsten, Hornik, Kurt, Zeileis, Achim (2006) Unbiased recursive partitioning: A conditional inference framework0.9416383%
6Janitza, Silke, Tutz, Gerhard, Boulesteix, Anne Laure (2016) Random forest for ordinal responses: Prediction and variable selection0.92810480%
7Lechner, Michael, Okasa, Gabriel (2019) orf: Ordered Random Forests self0.8434475%
8(2021) R: A Language and Environment for Statistical Computing0.7373367%
9Hastie, Trevor, Tibshirani, Robert, Friedman, Jerome (2009) The Elements of Statistical Learning: Data Mining, Inference, and Prediction0.73732100%
10Meinshausen, Nicolai (2006) Quantile Regression Forests0.73732100%

Showing the top 10 of 68 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
1Ordered Correlation Forest1.00075