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Smoothing Spline as a Guide to Elaborate Explanatory Modeling

  • Chon Van Le
Conference paper
Part of the Studies in Computational Intelligence book series (SCI, volume 753)

Abstract

Although there are substantial theoretical and empirical differences between explanatory modeling and predictive modeling, they should be considered as two dimensions. And predictive modeling can work as a “fact check” to propose improvements to existing explanatory modeling. In this paper, I use smoothing spline, a nonparametric calibration technique which is originally designed to intensify the predictive power, as a guide to revise explanatory modeling. It works for the housing value model of Harrison and Rubinfeld (1978) because the modified model is more meaningful and fits better to actual data.

Keywords

Predictive econometrics Calibration Smoothing spline 

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Copyright information

© Springer International Publishing AG 2018

Authors and Affiliations

  1. 1.School of BusinessInternational University - VNU HCMCHo Chi Minh CityVietnam

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