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Leverage is strongly related to liquidity in a market and lack of liquidity is considered a cause and/or consequence of the recent financial crisis. A repurchase agreement is a financial instrument where a security is sold simultaneously…

General Finance · Quantitative Finance 2010-11-05 Wanfeng Yan , Ryan Woodard , Didier Sornette

We propose a novel framework that leverages large language models (LLMs) to guide the rank selection in tensor network models for higher-order data analysis. By utilising the intrinsic reasoning capabilities and domain knowledge of LLMs,…

Machine Learning · Computer Science 2024-10-15 Giorgos Iacovides , Wuyang Zhou , Danilo Mandic

The ability to learn disentangled representations that split underlying sources of variation in high dimensional, unstructured data is important for data efficient and robust use of neural networks. While various approaches aiming towards…

Machine Learning · Statistics 2019-05-15 Raphael Suter , Đorđe Miladinović , Bernhard Schölkopf , Stefan Bauer

Researchers now routinely use AI or other machine learning methods to estimate latent variables of economic interest, then plug-in the estimates as covariates in a regression. We show both theoretically and empirically that naively treating…

Econometrics · Economics 2025-05-01 Laura Battaglia , Timothy Christensen , Stephen Hansen , Szymon Sacher

In 2010, Joyce et. al defined the leverage centrality of vertices in a graph as a means to analyze functional connections within the human brain. In this metric a degree of a vertex is compared to the degrees of all it neighbors. We…

Combinatorics · Mathematics 2017-01-18 Roger Vargas, , Abigail Waldron , Anika Sharma , Rigoberto Flórez , Darren A. Narayan

Causal graph recovery is traditionally done using statistical estimation-based methods or based on individual's knowledge about variables of interests. They often suffer from data collection biases and limitations of individuals' knowledge.…

Computation and Language · Computer Science 2024-06-19 Yuzhe Zhang , Yipeng Zhang , Yidong Gan , Lina Yao , Chen Wang

Many economic activities are embedded in networks: sets of agents and the (often) rivalrous relationships connecting them to one another. Input sourcing by firms, interbank lending, scientific research, and job search are four examples,…

Econometrics · Economics 2019-12-16 Bryan S. Graham

As Large Language Models (LLMs) become increasingly widespread, understanding how specific training data shapes their outputs is crucial for transparency, accountability, privacy, and fairness. To explore how LLMs leverage and replicate…

Computation and Language · Computer Science 2025-07-03 Arthur Wuhrmann , Anastasiia Kucherenko , Andrei Kucharavy

The acceleration of Large Language Models (LLMs) research has opened up new possibilities for evaluating generated texts. They serve as scalable and economical evaluators, but the question of how reliable these evaluators are has emerged as…

Computation and Language · Computer Science 2024-12-10 Minzhi Li , Zhengyuan Liu , Shumin Deng , Shafiq Joty , Nancy F. Chen , Min-Yen Kan

Large Language Models (LLMs) are increasingly used to generate textual explanations of process models discovered from event logs. Producing explanations from large behavioral abstractions (e.g., directly-follows graphs or Petri nets) can be…

Machine Learning · Computer Science 2025-10-14 P. van Oerle , R. H. Bemthuis , F. A. Bukhsh

A new statistical technique for constructing linear latent structure (LLS) models from available data, supported by well established theoretical results and an efficient algorithm, is presented. The method reduces the problem of estimating…

Statistics Theory · Mathematics 2007-06-13 I. Akushevich , M. Kovtun , A. I. Yashin , K. G. Manton

Reduced-rank decompositions provide descriptions of the variation among the elements of a matrix or array. In such decompositions, the elements of an array are expressed as products of low-dimensional latent factors. This article presents a…

Methodology · Statistics 2010-06-01 Peter Hoff

The rapid advancement of Large Language Models (LLMs) has sparked intense debate regarding the prevalence of bias in these models and its mitigation. Yet, as exemplified by both results on debiasing methods in the literature and reports of…

Computation and Language · Computer Science 2024-05-14 David F. Jenny , Yann Billeter , Mrinmaya Sachan , Bernhard Schölkopf , Zhijing Jin

Counterfactual reasoning has emerged as a crucial technique for generalizing the reasoning capabilities of large language models (LLMs). By generating and analyzing counterfactual scenarios, researchers can assess the adaptability and…

Artificial Intelligence · Computer Science 2026-02-17 Shuai Yang , Qi Yang , Luoxi Tang , Yuqiao Meng , Nancy Guo , Jeremy Blackburn , Zhaohan Xi

We apply methods from randomized numerical linear algebra (RandNLA) to develop improved algorithms for the analysis of large-scale time series data. We first develop a new fast algorithm to estimate the leverage scores of an autoregressive…

Methodology · Statistics 2021-11-02 Ali Eshragh , Fred Roosta , Asef Nazari , Michael W. Mahoney

Regression analysis is a key area of interest in the field of data analysis and machine learning which is devoted to exploring the dependencies between variables, often using vectors. The emergence of high dimensional data in technologies…

Machine Learning · Statistics 2023-08-23 Jiani Liu , Ce Zhu , Zhen Long , Yipeng Liu

The application of machine learning to support the processing of large datasets holds promise in many industries, including financial services. However, practical issues for the full adoption of machine learning remain with the focus being…

Machine Learning · Computer Science 2021-05-14 Ismini Psychoula , Andreas Gutmann , Pradip Mainali , S. H. Lee , Paul Dunphy , Fabien A. P. Petitcolas

Machine learning tasks entail the use of complex computational pipelines to reach quantitative and qualitative conclusions. If some of the activities in a pipeline produce erroneous or uninformative outputs, the pipeline may fail or produce…

Machine Learning · Computer Science 2020-02-13 Raoni Lourenço , Juliana Freire , Dennis Shasha

Faithful evaluation of language model capabilities is crucial for deriving actionable insights that can inform model development. However, rigorous causal evaluations in this domain face significant methodological challenges, including…

Machine Learning · Computer Science 2025-06-13 Jikai Jin , Vasilis Syrgkanis , Sham Kakade , Hanlin Zhang

The linear regression model is widely used in the biomedical and social sciences as well as in policy and business research to adjust for covariates and estimate the average effects of treatments. Behind every causal inference endeavor…

Methodology · Statistics 2024-04-23 Ambarish Chattopadhyay , Noah Greifer , Jose R. Zubizarreta