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We propose a tractable unified framework to study the evolution and interaction of model-misspecification concerns and complexity aversion in repeated decision problems. This aims to capture environments where decision makers worry that…

Theoretical Economics · Economics 2026-02-18 Drew Fudenberg , Florian Mudekereza

We study probabilistic prediction games when the underlying model is misspecified, investigating the consequences of predicting using an incorrect parametric model. We show that for a broad class of loss functions and parametric families of…

Machine Learning · Statistics 2021-02-02 Annie Marsden , John Duchi , Gregory Valiant

This article introduces a framework for evaluating statistical decisions under both prior ambiguity and likelihood misspecification. We begin with an ambiguity set - a frequentist model that pairs a possibly misspecified likelihood with…

Econometrics · Economics 2026-05-14 Karun Adusumilli

In settings where ML models are used to inform the allocation of resources, agents affected by the allocation decisions might have an incentive to strategically change their features to secure better outcomes. While prior work has studied…

When it is acknowledged that all candidate parameterised statistical models are misspecified relative to the data generating process, the decision maker (DM) must currently concern themselves with inference for the parameter value…

Statistics Theory · Mathematics 2018-07-04 Jack Jewson , Jim Q Smith , Chris Holmes

This paper examines asymptotic properties of local M-estimators under three sets of high-level conditions. These conditions are sufficiently general to cover the minimum volume predictive region, conditional maximum score estimator for a…

Statistics Theory · Mathematics 2020-01-15 Myung Hwan Seo , Taisuke Otsu

Deep learning models achieve high predictive performance but lack intrinsic interpretability, hindering our understanding of the learned prediction behavior. Existing local explainability methods focus on associations, neglecting the causal…

Machine Learning · Computer Science 2025-09-18 Niklas Penzel , Joachim Denzler

Specifying reward functions for robots that operate in environments without a natural reward signal can be challenging, and incorrectly specified rewards can incentivise degenerate or dangerous behavior. A promising alternative to manually…

Artificial Intelligence · Computer Science 2021-01-20 Rachel Freedman , Rohin Shah , Anca Dragan

In robotics, likelihood-free inference (LFI) can provide the domain distribution that adapts a learnt agent in a parametric set of deployment conditions. LFI assumes an arbitrary support for sampling, which remains constant as the initial…

Robotics · Computer Science 2026-02-26 Georgios Kamaras , Craig Innes , Subramanian Ramamoorthy

Spatial regression models have a variety of applications in several fields ranging from economics to public health. Typically, it is of interest to select important exogenous predictors of the spatially autocorrelated response variable. In…

Methodology · Statistics 2025-10-31 Sagar Pandhare , Divya Kappara , Siuli Mukhopadhyay

A commonly observed pattern in machine learning models is an underprediction of the target feature, with the model's predicted target rate for members of a given category typically being lower than the actual target rate for members of that…

Machine Learning · Computer Science 2023-07-06 Owen O'Neill , Fintan Costello

In a recent paper Noh et al. (2013) proposed a new semiparametric estimate of a regression function with a multivariate predictor, which is based on a specification of the dependence structure between the predictor and the response by means…

Methodology · Statistics 2016-11-25 Holger Dette , Ria Van Hecke , Stanislav Volgushev

We introduce a generic class of dynamic nonlinear heterogeneous parameter models that incorporate individual and time fixed effects in both the intercept and slope. These models are subject to the incidental parameter problem, in that the…

Econometrics · Economics 2026-01-27 Xuan Leng , Jiaming Mao , Yutao Sun

We consider inference about coefficients on a small number of variables of interest in a linear panel data model with additive unobserved individual and time specific effects and a large number of additional time-varying confounding…

Methodology · Statistics 2017-09-29 Christian Hansen , Yuan Liao

Machine learning algorithms are increasingly used to inform critical decisions. There is a growing concern about bias, that algorithms may produce uneven outcomes for individuals in different demographic groups. In this work, we measure…

Machine Learning · Computer Science 2021-06-01 Runshan Fu , Yangfan Liang , Peter Zhang

Parameter estimates in misspecified models converge to pseudo-true parameter values, which minimize a population objective function. Pseudo-true values often differ from quantities of economic interest, raising questions of how, if at all,…

Econometrics · Economics 2026-04-20 Isaiah Andrews , Harvey Barnhard , Jacob Carlson

In over-identified models, misspecification -- the norm rather than exception -- fundamentally changes what estimators estimate. Different estimators imply different estimands rather than different efficiency for the same target. A review…

Econometrics · Economics 2026-02-23 Isaiah Andrews , Jiafeng Chen , Otavio Tecchio

Classification, the process of assigning a label (or class) to an observation given its features, is a common task in many applications. Nonetheless in most real-life applications, the labels can not be fully explained by the observed…

Machine Learning · Statistics 2018-11-07 Johan Barthélemy , Morgane Dumont , Timoteo Carletti

We study the fundamental problem of estimating an unknown discrete distribution $p$ over $d$ symbols, given $n$ i.i.d. samples from the distribution. We are interested in minimizing the KL divergence between the true distribution and the…

Machine Learning · Statistics 2025-05-30 Jiayuan Ye , Vitaly Feldman , Kunal Talwar

This paper studies identification and estimation of a class of dynamic models in which the decision maker (DM) is uncertain about the data-generating process. The DM surrounds a benchmark model that he or she fears is misspecified by a set…

Econometrics · Economics 2019-01-30 Timothy M. Christensen