Machine Learning Methods for Demand Estimation

S-Tier
Journal: American Economic Review
Year: 2015
Volume: 105
Issue: 5
Pages: 481-85

Score contribution per author:

2.011 = (α=2.01 / 4 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We survey and apply several techniques from the statistical and computer science literature to the problem of demand estimation. To improve out-of-sample prediction accuracy, we propose a method of combining the underlying models via linear regression. Our method is robust to a large number of regressors; scales easily to very large data sets; combines model selection and estimation; and can flexibly approximate arbitrary non-linear functions. We illustrate our method using a standard scanner panel data set and find that our estimates are considerably more accurate in out-of-sample predictions of demand than some commonly used alternatives.

Technical Details

RePEc Handle
repec:aea:aecrev:v:105:y:2015:i:5:p:481-85
Journal Field
General
Author Count
4
Added to Database
2026-01-24