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Discrete Choice Analysis with Machine Learning Capabilities

Youssef M. Aboutaleb, Mazen Danaf, Yifei Xie, Moshe Ben-Akiva

arXiv 21 Jan 2021 · Machine Learning · 3 citations (OpenAlex)

arXiv:2101.10261 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper discusses capabilities that are essential to models applied in policy analysis settings and the limitations of direct applications of off-the-shelf machine learning methodologies to such settings. Traditional econometric methodologies for building discrete choice models for policy analysis involve combining data with modeling assumptions guided by subject-matter considerations. Such considerations are typically most useful in specifying the systematic component of random utility discrete choice models but are typically of limited aid in determining the form of the random component. We identify an area where machine learning paradigms can be leveraged, namely in specifying and systematically selecting the best specification of the random component of the utility equations. We review two recent novel applications where mixed-integer optimization and cross-validation are used to algorithmically select optimal specifications for the random utility components of nested logit and logit mixture models subject to interpretability constraints.

Citation extraction

44
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in-text mentions
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distinct cited
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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
1Athey, S (2018) The impact of machine learning on economics0.84333100%
2Ben-Akiva, M. E. and S. R. Lerman (1985) Discrete choice analysis: theory and application to travel demand, Volume 9 self0.81142100%
3Manski, C. F (2009) Identification for prediction and decision0.81142100%
4Aboutaleb, Y. M (2019) Learning structure in nested logit models self0.73732100%
5Aboutaleb, Y. M., M. Danaf, Y. Xie, and M. Ben-Akiva (2021) Sparse covariance estimation in logit mixture models self0.73732100%
6Manski, C. F (2013) Public policy in an uncertain world: analysis and decisions0.64422100%
7McFadden, D (1981) Econometric models of probabilistic choice0.64422100%
8Pearl, J (2000) Causality: models, reasoning and inference, Volume 290.64422100%
9Train, K. E (2009) Discrete choice methods with simulation0.64422100%
10Rosasco, L. and T. Poggio (2017, December) (2017) Machine learning: a regularization approach mit-9.520 lectures notes0.51121100%

Showing the top 10 of 44 scored citations.