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International Finance Discussion Papers
The International Finance Discussion Papers logo links to the International Finance Discussion Papers home page Constructive Data Mining: Modeling Consumers' Expenditure in Venezuela
Julia Campos; Neil R. Ericsson
2000-663  (April 2000)

Abstract:  Hoover and Perez (1999) advocate a constructive approach to data mining. The current paper identifies four pejorative senses of data mining and shows how Hoover and Perez's approach counters each. To assess the benefits of constructive data mining, the current paper applies a data-mining algorithm similar to Hoover and Perez's to a dataset for Venezuelan consumers' expenditure. The selected model is economically sensible and statistically satisfactory; and it illustrates how data can be highly informative, even with relatively few observations. Limitations to algorithmically based data mining provide opportunities for the researcher to contribute value added in the empirical analysis.

Full paper (1529 KB Postscript) | Full paper (227 KB PDF)

Keywords
Dynamics, Encompassing, General-to-specific modeling, Hoover and Perez (1999), Model design, PcGets.

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Last update: July 19, 2001