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In this paper, we address the identification and estimation of insurance models where insurees have private information about their risk and risk aversion. The model includes random damages and allows for several claims, while insurers…

General Economics · Economics 2024-10-14 Gaurab Aryal , Isabelle Perrigne , Quang Vuong , Haiqing Xu

Linear mixed effects models are widely used in statistical modelling. We consider a mixed effects model with Bayesian variable selection in the random effects using spike-and-slab priors and developed a variational Bayes inference scheme…

Methodology · Statistics 2024-08-15 M-Z. Spyropoulou , J. Hopker , J. E. Griffin

As the use of machine learning in high impact domains becomes widespread, the importance of evaluating safety has increased. An important aspect of this is evaluating how robust a model is to changes in setting or population, which…

Machine Learning · Computer Science 2021-03-16 Adarsh Subbaswamy , Roy Adams , Suchi Saria

Exponential random graph models are a class of widely used exponential family models for social networks. The topological structure of an observed network is modelled by the relative prevalence of a set of local sub-graph configurations…

Computation · Statistics 2013-01-21 Alberto Caimo , Nial Friel

Discrete-time hazard models are widely used when event times are measured in intervals or are not precisely observed. While these models can be estimated using standard generalized linear model techniques, they rely on extensive data…

Methodology · Statistics 2025-07-14 Benjamin Müller , Nikolaus Umlauf , Johannes Seiler , Kenneth Harttgen , Stefan Lang

This paper compares three approaches to the problem of selecting among probability models to fit data (1) use of statistical criteria such as Akaike's information criterion and Schwarz's "Bayesian information criterion," (2) maximization of…

Methodology · Statistics 2016-11-04 William B. Poland , Ross D. Shachter

This work examines a stochastic volatility model with double-exponential jumps in the context of option pricing. The model has been considered in previous research articles, but no thorough analysis has been conducted to study its quality…

Pricing of Securities · Quantitative Finance 2025-09-17 Gaetano Agazzotti , Claudio Aglieri Rinella , Jean-Philippe Aguilar , Justin Lars Kirkby

The problem of demand inversion - a crucial step in the estimation of random utility discrete-choice models - is equivalent to the determination of stable outcomes in two-sided matching models. This equivalence applies to random utility…

Econometrics · Economics 2021-11-30 Odran Bonnet , Alfred Galichon , Yu-Wei Hsieh , Keith O'Hara , Matt Shum

Optimal dynamic treatment regimes (DTRs), as a key part of precision medicine, have progressively gained more attention recently. To inform clinical decision making, interpretable and parsimonious models for contrast functions are…

Methodology · Statistics 2025-12-08 Chunyu Wang , Brian Tom

We propose a model of two-way selection system. It appears in the processes like choosing a mate between men and women, making contracts between job hunters and recruiters, and trading between buyers and sellers. In this paper, we propose a…

General Physics · Physics 2015-02-20 Bin Zhou , Shujia Qin , Xiao-Pu Han , Zhe He , Jia-Rong Xie , Bing-Hong Wang

Datasets for training recommender systems are often subject to distribution shift induced by users' and recommenders' selection biases. In this paper, we study the impact of selection bias on datasets with different quantization. We then…

Information Retrieval · Computer Science 2022-12-29 Fengyu Li , Sarah Dean

Current approaches to fair valuation in insurance often follow a two-step approach, combining quadratic hedging with application of a risk measure on the residual liability, to obtain a cost-of-capital margin. In such approaches, the…

Risk Management · Quantitative Finance 2023-06-22 Karim Barigou , Valeria Bignozzi , Andreas Tsanakas

Variational inference using the reparameterization trick has enabled large-scale approximate Bayesian inference in complex probabilistic models, leveraging stochastic optimization to sidestep intractable expectations. The reparameterization…

Machine Learning · Statistics 2020-02-13 Christian A. Naesseth , Francisco J. R. Ruiz , Scott W. Linderman , David M. Blei

A popular technique for selecting and tuning machine learning estimators is cross-validation. Cross-validation evaluates overall model fit, usually in terms of predictive accuracy. In causal inference, the optimal choice of estimator…

Methodology · Statistics 2021-07-07 Dominik Rothenhäusler

It has been argued persuasively that, in order to evaluate climate models, the probability distributions of model output need to be compared to the corresponding empirical distributions of observed data. Distance measures between…

Methodology · Statistics 2013-07-17 Thordis L. Thorarinsdottir , Tilmann Gneiting , Nadine Gissibl

Insurance products frequently cover significant claims arising from a variety of sources. To model losses from these products accurately, actuarial models must account for high-severity claims. A widely used strategy is to apply a mixture…

Methodology · Statistics 2025-04-30 Sébastien Jessup , Mélina Mailhot , Mathieu Pigeon

We propose a method for variable selection in multiple regression with random predictors. This method is based on a criterion that permits to reduce the variable selection problem to a problem of estimating suitable permutation and…

Statistics Theory · Mathematics 2015-06-29 Alban Mbina Mbina , Guy Martial Nkiet , Assi Nguessan

This paper studies how insurers can chose which claims to investigate for fraud. Given a prediction model, typically only claims with the highest predicted propability of being fraudulent are investigated. We argue that this can lead to…

Machine Learning · Statistics 2025-09-24 Christos Revelas , Otilia Boldea , Bas J. M. Werker

This project works with the risk model developed by Li et al. (2015) and quests modelling, estimating and pricing insurance for risks brought in by innovative technologies, or other emerging or latent risks. The model considers two…

Statistics Theory · Mathematics 2019-05-20 Weihong Ni , Corina Constantinescu , Alfredo Egídio dos Reis , Véronique Maume-Deschamps

Coordinate descent methods employ random partial updates of decision variables in order to solve huge-scale convex optimization problems. In this work, we introduce new adaptive rules for the random selection of their updates. By adaptive,…

Machine Learning · Computer Science 2017-03-08 Dmytro Perekrestenko , Volkan Cevher , Martin Jaggi