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Bibliographic Details
Main Author: Huang, Xiao
Format: Preprint
Published: 2021
Subjects:
Online Access:https://arxiv.org/abs/2112.08934
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author Huang, Xiao
author_facet Huang, Xiao
contents We consider a two-stage estimation method for linear regression. First, it uses the lasso in Tibshirani (1996) to screen variables and, second, re-estimates the coefficients using the least-squares boosting method in Friedman (2001) on every set of selected variables. Based on the large-scale simulation experiment in Hastie et al. (2020), lassoed boosting performs as well as the relaxed lasso in Meinshausen (2007) and, under certain scenarios, can yield a sparser model. Applied to predicting equity returns, lassoed boosting gives the smallest mean-squared prediction error compared to several other methods.
format Preprint
id arxiv_https___arxiv_org_abs_2112_08934
institution arXiv
publishDate 2021
record_format arxiv
spellingShingle Lassoed Boosting and Linear Prediction in the Equities Market
Huang, Xiao
Econometrics
We consider a two-stage estimation method for linear regression. First, it uses the lasso in Tibshirani (1996) to screen variables and, second, re-estimates the coefficients using the least-squares boosting method in Friedman (2001) on every set of selected variables. Based on the large-scale simulation experiment in Hastie et al. (2020), lassoed boosting performs as well as the relaxed lasso in Meinshausen (2007) and, under certain scenarios, can yield a sparser model. Applied to predicting equity returns, lassoed boosting gives the smallest mean-squared prediction error compared to several other methods.
title Lassoed Boosting and Linear Prediction in the Equities Market
topic Econometrics
url https://arxiv.org/abs/2112.08934