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Estimating Parameters of Structural Models Using Neural Networks

Yanhao, Wei, Zhenling Jiang

arXiv 7 Feb 2025 · Econometrics · publishedMarketing Science (2024) · 16 citations (OpenAlex)

arXiv:2502.04945 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We study an alternative use of machine learning. We train neural nets to provide the parameter estimate of a given (structural) econometric model, for example, discrete choice or consumer search. Training examples consist of datasets generated by the econometric model under a range of parameter values. The neural net takes the moments of a dataset as input and tries to recognize the parameter value underlying that dataset. Besides the point estimate, the neural net can also output statistical accuracy. This neural net estimator (NNE) tends to limited-information Bayesian posterior as the number of training datasets increases. We apply NNE to a consumer search model. It gives more accurate estimates at lighter computational costs than the prevailing approach. NNE is also robust to redundant moment inputs. In general, NNE offers the most benefits in applications where other estimation approaches require very heavy simulation costs. We provide code at: https://nnehome.github.io.

Citation extraction

43
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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
1Chen (2007) Large Sample Sieve Estimation of Semi-nonparametric Models0.7374350%
2White (1990) Connectionist Nonparametric Regression: Multilayer Feedforward Networks Can Learn Arbitrary Mappings0.7374350%
3Farrell, Liang and Misra (2021) Deep Neural Networks for Estimation and Inference0.7373367%
4Ursu (2018) The Power of Rankings: Quantifying the Effect of Rankings on Online Consumer Search and Purchase Decisions0.69391100%
5Chen and Liao (2015) Select the Valid and Relevant Moments: An Information-based LASSO for GMM with Many Moments0.64422100%
6Newey (2007) Generalized Method of Moments0.64422100%
7White (1989) Learning in Artificial Neural Networks: A Statistical Perspective0.5112250%
8Geweke and Keane (2001) Computationally Intensive Methods for Integration in Econometrics0.51121100%
9Gourieroux, Monfort and Renault (1993) Indirect Inference0.51121100%
10Kim (2002) Limited Information Likelihood and Bayesian Analysis0.51121100%

Showing the top 10 of 43 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
1Reinforcement Learning Based Computationally Efficient Conditional Choice Simulation Estimation of Dynamic Discrete Choice Models0.40511
2Personalized Policy Learning through Discrete Experimentation: Theory and Empirical Evidence0.40511
3Amortized Inference for Correlated Discrete Choice Models via Equivariant Neural Networks0.40511