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This article provides a curated review of selected papers published in prominent economics journals that use machine learning (ML) tools for research and policy analysis. The review focuses on three key questions: (1) when ML is used in…

General Economics · Economics 2023-04-21 Ajit Desai

Stock market prediction has been a classical yet challenging problem, with the attention from both economists and computer scientists. With the purpose of building an effective prediction model, both linear and machine learning tools have…

Statistical Finance · Quantitative Finance 2021-08-13 Weiwei Jiang

AI Planning, Machine Learning and Process Mining have so far developed into separate research fields. At the same time, many interesting concepts and insights have been gained at the intersection of these areas in recent years. For example,…

Artificial Intelligence · Computer Science 2022-08-19 Peter Fettke , Alexander Rombach

Machine learning methods are being increasingly applied in sensitive societal contexts, where decisions impact human lives. Hence it has become necessary to build capabilities for providing easily-interpretable explanations of models'…

Machine Learning · Computer Science 2021-04-13 Alfredo Carrillo , Luis F. Cantú , Luis Tejerina , Alejandro Noriega

Decision analytics commonly focuses on the text mining of financial news sources in order to provide managerial decision support and to predict stock market movements. Existing predictive frameworks almost exclusively apply traditional…

Machine Learning · Statistics 2018-07-05 Stefan Feuerriegel , Ralph Fehrer

A new and rapidly growing econometric literature is making advances in the problem of using machine learning methods for causal inference questions. Yet, the empirical economics literature has not started to fully exploit the strengths of…

General Economics · Economics 2021-01-05 Anna Baiardi , Andrea A. Naghi

Multiple studies have now demonstrated that machine learning (ML) can give improved skill for predicting or simulating fairly typical weather events, for tasks such as short-term and seasonal weather forecasting, downscaling simulations to…

Atmospheric and Oceanic Physics · Physics 2023-08-30 Peter AG Watson

Big data and machine learning are driving comprehensive economic and social transformations and are rapidly re-shaping the toolbox and the methodologies of applied scientists. Machine learning tools are designed to learn functions from data…

Fluid Dynamics · Physics 2024-04-16 M. A. Mendez , J. Dominique , M. Fiore , F. Pino , P. Sperotto , J. Van den Berghe

Temporal data are ubiquitous in the financial services (FS) industry -- traditional data like economic indicators, operational data such as bank account transactions, and modern data sources like website clickstreams -- all of these occur…

Statistical Finance · Quantitative Finance 2020-09-15 Jason Wittenbach , Brian d'Alessandro , C. Bayan Bruss

Bias is known to be an impediment to fair decisions in many domains such as human resources, the public sector, health care etc. Recently, hope has been expressed that the use of machine learning methods for taking such decisions would…

Machine Learning · Computer Science 2019-09-05 Jindong Gu , Daniela Oelke

Financial risk prediction plays a crucial role in the financial sector. Machine learning methods have been widely applied for automatically detecting potential risks and thus saving the cost of labor. However, the development in this field…

Risk Management · Quantitative Finance 2023-08-02 Yuwei Yin , Yazheng Yang , Jian Yang , Qi Liu

In this review, we highlight recent developments in the application of machine learning for molecular modeling and simulation. After giving a brief overview of the foundations, components, and workflow of a typical supervised learning…

Data Analysis, Statistics and Probability · Physics 2019-02-21 Mojtaba Haghighatlari , Johannes Hachmann

This book chapter introduces the principles and practical applications of uncertainty quantification in machine learning. It explains how to identify and distinguish between different types of uncertainty and presents methods for…

Machine Learning · Computer Science 2025-10-08 Hans Weytjens , Wouter Verbeke

This study emphasizes how crucial it is to visualize machine learning models, especially for the banking industry, in order to improve interpretability and support predictions in high stakes financial settings. Visual tools enable…

Machine Learning · Computer Science 2025-02-24 Priyam Ganguly , Ramakrishna Garine , Isha Mukherjee

Big data, both in its structured and unstructured formats, have brought in unforeseen challenges in economics and business. How to organize, classify, and then analyze such data to obtain meaningful insights are the ever-going research…

General Economics · Economics 2025-02-04 Viet Trinh

While great advances are made in pattern recognition and machine learning, the successes of such fields remain restricted to narrow applications and seem to break down when training data is scarce, a shift in domain occurs, or when…

Machine Learning · Computer Science 2018-02-20 Amir Rosenfeld , John K. Tsotsos

The paper examines the potential of deep learning to support decisions in financial risk management. We develop a deep learning model for predicting whether individual spread traders secure profits from future trades. This task embodies…

Risk Management · Quantitative Finance 2019-11-19 Yaodong Yang , Alisa Kolesnikova , Stefan Lessmann , Tiejun Ma , Ming-Chien Sung , Johnnie E. V. Johnson

Personalisation of products and services is fast becoming the driver of success in banking and commerce. Machine learning holds the promise of gaining a deeper understanding of and tailoring to customers' needs and preferences. Whereas…

Machine Learning · Computer Science 2022-06-30 Charl Maree , Christian Omlin

We explore the use of deep learning hierarchical models for problems in financial prediction and classification. Financial prediction problems -- such as those presented in designing and pricing securities, constructing portfolios, and risk…

Machine Learning · Computer Science 2018-01-16 J. B. Heaton , N. G. Polson , J. H. Witte

Concerns regarding fairness and bias have been raised in recent years due to the growing use of machine learning models in crucial decision-making processes, especially when it comes to delicate characteristics like gender. In order to…

Machine Learning · Computer Science 2024-08-30 Saish Shinde