Differences in Differences Parallel Trends - statistics

I want to measure whether the impact of a company's headquarter country on my independent variable (goodwill paid) is stronger during recessions. After some researching, I found out that the differences-in-differences analysis could solve my problem. However, in the internet they always show a diagram (see example under: https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.publichealth.columbia.edu%2Fresearch%2Fpopulation-health-methods%2Fdifference-difference-estimation&psig=AOvVaw1yMN6knTtOEahZ9vstJpnV&ust=1676208292554000&source=images&cd=vfe&ved=0CAwQjRxqFwoTCLjbrNDIjf0CFQAAAAAdAAAAABAE ) with the "treatment" and "parallel trends". So two lines that increase or decrease in the same way until the treatment and then one line increase/decreases more than the other.
My question now is what is my treatment and what is my control variable in my example? The treatment cannot be recessions because otherwise I just have the treatment group after the treatment and the control group before the recessions. If you think another statistical test may be better, I would be happy to consider that.
Furthermore, I just want to make sure that I created my model correctly: Goodwil Paid=B0+B1ressions+B2Country+B3ressionsCountry
Would that tell me whether the impact of the country is stronger during recessions?
Thanks a lot for your help.

Related

Are transformer-based language models overfitting on the paraphrase identification task? What tools overcome this?

I've been working on a sentence transformation task that involves paraphrase identification as a critical step: if we are confident enough that the state of the program (a sentence repeatedly modified) has become a paraphrase of a target sentence, stop transforming. The overall goal is actually to study potential reasoning in predictive models that can generate language prior to a target sentence. The approach is just one specific way of reaching that goal. Nevertheless, I've become interested in the paraphrase identification task itself, as it's received some boost from language models recently.
The problem I run into is when I manipulate sentences from examples or datasets. For example, in this HuggingFace example, if I negate either sequence or change the subject to Bloomberg, I still get a majority "is paraphrase" prediction. I started going through many examples in the MSRPC training set and negating one sentence in a positive example or making one sentence in a negative example a paraphrase of the other, especially when doing so would be a few word edit. I found to my surprise that various language models, like bert-base-cased-finetuned-mrpc and textattack/roberta-base-MRPC, don't change their confidences much on these sorts of changes. It's surprising as these models claim an f1 score of 0.918+. The dataset is clearly missing a focus on negative examples and small perturbative examples.
My question is, are there datasets, techniques, or models that deal well when given small edits? I know that this is an extremely generic question, much more than is typically asked on StackOverflow, but my concern is in finding practical tools. If there is a theoretical technique, then it might not be suitable as I'm in the category of "available tools define your approach" rather than vice-versa. So I hope that the community would have a recommendation on this.
Short answer to the question: yes, they are overfitting. Most of the important NLP data sets are not actually well-crafted enough to test what they claim to test, and instead test the ability of the model to find subtle (and not-so-subtle) patterns in the data.
The best tool I know for creating data sets that help deal with this is Checklist. The corresponding paper, "Beyond Accuracy: Behavioral Testing of NLP models with CheckList" is very readable and goes into depth on this type of issue. They have a very relevant table... but need some terms:
We prompt users to evaluate each capability with
three different test types (when possible): Minimum Functionality tests, Invariance, and Directional Expectation tests... A Minimum Functionality test (MFT), is a collection of simple examples (and labels) to check a
behavior within a capability. MFTs are similar to
creating small and focused testing datasets, and are
particularly useful for detecting when models use
shortcuts to handle complex inputs without actually
mastering the capability.
...An Invariance test (INV) is when we apply
label-preserving perturbations to inputs and expect
the model prediction to remain the same.
A Directional Expectation test (DIR) is similar,
except that the label is expected to change in a certain way. For example, we expect that sentiment
will not become more positive if we add “You are
lame.” to the end of tweets directed at an airline
(Figure 1C).
I haven't been actively involved in NLG for long, so this answer will be a bit more anecdotal than SO's algorithms would like. Starting with the fact that in my corner of Europe, the general sentiment toward peer review requirements for any kind of NLG project are higher by several orders of magnitude compared to other sciences - and likely not without reason or tensor thereof.
This makes funding a bigger challenge, so wherever you are, I wish you luck on that front. I'm not sure of how big of a deal this site is in the niche, but [Ehud Reiter's Blog][1] is where I would start looking into your tooling ideas.
Maybe even reach out to them/him personally, because I can't think of another source that has an academic background and a strong propensity for practical applications of NLG, at least based on the kind of content they've been putting out over the years.
Your background, environment/funding, and seniority level/control you have over the project will eventually compose your vector decision for you. I's just how it goes on the bleeding edge of anything. What I will add, though, is not to limit yourself to a single language or technology in this phase because of those precise reasons you've mentioned. I'd recommend the same in terms of potential open source involvement but if your profile information is accurate, that probably won't happen, no matter what you do and accomplish.
But yeah, in the grand scheme of things, your question is far from too broad, in my view. It identifies a rather unmistakable problem pattern that not all branches of science are as lackadaisical to approach as NLG-adjacent fields seem to be right now. In that regard, it's not broad enough and will need to be promulgated far and wide before community-driven tooling will give you serious options on a micro level.
Blasphemy, sure, but the performance is already stacked against you As for the question potentially being too broad, I'd posit it is not broad enough, so long as we collectively remain in a "oh, I was waiting for you to start doing something about it" phase.
P.S. I'd eliminate any Rust and ECMAScript alternatives prior to looking into Python, blapshemous as this might sound to a 2021 data scientist
. Some might ARight nowccounting forr the ridicule this would receive xou sltrsfx hsbr s fszs drz zhsz s mrnzsl rcrtvidr, sz lrsdz
due to performance easons.
[1]: https://ehudreiter.com/2016/12/18/nlg-vs-templates/

Testing for heteroskedasticity and autocorrelation in large unbalanced panel data

I want to test for heteroskedasticity and autocorrelation in a large unbalanced panel dataset.
I do so using the following code:
* Heteroskedasticity test
// iterated GLS with only heteroskedasticity produces
// maximum-likelihood parameter estimates
xtgls adjusted_volume ibn.rounded_time i.id i.TRD_EVENT_DT, igls panels(heteroskedastic)
estimates store hetero
* Autocorrelation
findit xtserial
net sj 3-2 st0039
net install st0039
xtserial adjusted_volume ibn.rounded_time i.id i.TRD_EVENT_DT
Though I use the calculation power of high process center, because of the iteration method, this procedure takes more than 15 hours.
What is the most efficient program to perform these tests using Stata?
This question is borderline off-topic and quite broad, but i suspect still of
considerable interest to new users. As such, here i will try to consolidate our
conversation in the comments as an answer.
I strongly advise in the future to refrain from using highly subjective
words such as 'best', which can mean different things to different people. Or
terms like 'efficient', which can have a different meaning in a different context.
It is also difficult to provide specific advice regarding the use of commands
when we know nothing about what you are trying to do.
In my view, the 'best' choice, is the choice that gets the job done as accurately
as possible given the available data. Speed is an important consideration nowadays, but accuracy is still the most fundamental one. As you continue to use Stata, you will see that it has a considerable number of commands, often with overlapping functionality. Depending on the use case, sometimes opting for one implementation over another can be 'better', in the sense that it may be more practical or faster in achieving the desired end result.
Case in point, your comment in your previous post where the noconstant option is unavailable in rreg. In that particular context you can get a reasonably good alternative using regress with the vce(robust) option. In fact, this alternative may often be adequate for several use cases.
In this particular example, xtgls will be considerably faster if the igls
option is not used. This will be especially true with larger and more 'difficult' datasets. In cases where MLE is necessary, the iterate option will allow you to specify a fixed number of iterations, which could speed things up but can be a recipe for disaster if you don't know what you are doing and is thus not recommended. This option is usually used for other purposes. However, is xtgls the only command you could use? Read here why this may in fact not necessarily be the case.
Regarding speed, Stata in general is slow, at least when the ado language is used. This is because it is an interpreted language. The only realistic option for speed gains here is through parallelisation if you have Stata MP. Even in this case, whether any gains are achieved it will depend on a number of factors,
including which command you use.
Finally, xtserial is a community-contributed command, something which you
fail to make clear in your question. It is customary and useful to provide this
information right from the start, so others know that you do not refer to an
official, built-in command.

Crowdsourcing reliability measurements - spam/fraud detection

I'd like to collect some kind of geographical information from website users - for given set of data they will mark checkbox indicating whether place has or has not given property. Are there any tools/frameworks for detecting fraud or spam submissions based on whole colected data set (and possibly other info)? I'd like to get filtered, more reliable data.
Not sure if that's exactly what you're asking for, but here are some tips from my experience using Amazon Turk:
There are several academic papers dealing with such problems. here is a good one.
In addition, based on the following general recommendations, I've created a custom procedure which worked on my data:
a. Include an open question, and filter out cases where it wasn't answered. It's harder to answer such a question automatically, and it might also be more time-consuming, thus less attractive, for a fraudster.
b. If possible, don't use a binary scale (i.e. a checkbox), but some grade (e.g. 1-4 or 1-6). This would give you more data to work with.
c. If available, filter out cases where the time spent in filling your form was too short. (especially useful if you include that open question)
d. If you have multiplicity of inputs per user, check for repetitive answers, and for users which consistently give far-from-average answers.
If each user submits only a single "form", consider putting more than a single element/question in it, so you'll get multiple submissions per-user.
e. If you have only a single submission per user or user-id, your options are more limited. I can suggest filtering out outliars, (e.g. data points farther than 3 standard deviations from the average), in case you have enough data.
f. After all the filtering, check the agreement or disagreement in your data (e.g. by checking what proportion of your data points fall within x standard deviations from the average). In case of agreement, use the average; in case of disagreement, collect some more data.
Hope it helps,

Voting economy: balancing credits properly

Many websites today (including stackoverflow) and games allow people to perform voting, give feedback, enable additional features etc, according to a score: eg. reputation, or MMORPG credits.
As a programmer that will probably need to implement a community based website in the near future, I am interested in knowing about the existence of basic algorithms and decisions to be made so that everything is balanced. For example, the fact that one vote up grants 10 reputations and one down grants -2 was arbitrary or properly weighted ? How to decide the price of a given item and the rewards in a MMORPG, so that everything is balanced? I guess that WoW designers relied on their experience, but I am also sure that this experience can be found somewhere written down. Although this is a social problem, the pricing of a given feature and the reward for a given task are technical/mathematical ones, as you need to give a value to each feature according to some mathematical criteria (although not easy to devise, I guess)
Of course, this question could bring us far in terms of theory of economics, but I am sort of hoping that there are well defined and known simplified patterns and rules for this issue. I just don't know the keywords to query for.
Probably the most important thing to point out here is that this is a social problem not a technical one.
By that I mean that you could use the exact same system as SO on an MMORPG and it would flop or have really undesirable side effects. Whether a system works or not depends on the community you drop it into and the intended purpose. It can also depend on some luck whether people latch onto it or not. You may get early negative behaviour that sets the tone for future negativity and discourages positive involvement. Or it could go completely the other way.
There is no magic formula that made the vote/rep weighting what it is on SO other than long discussions about how to encourage certain behaviour and then some testing and fine-tuning. For example, a downvote costs 1 rep and is -2 rep to the recipient. The guiding principle was that downvotes should cost. After that, it was trial by error.
You might want to read The Value of Downvoting, or, How Hacker News Gets It Wrong and Vote Fraud for some of Jeff's and Joel's thoughts on that subject. Joel's Tech Talk on Stackoverflow at Google is also enlightening.
Voting is actually a very difficult problem. There are so many models of voting, and they all produce different results. For example, choosing your one favorite candidate versus ranking candidates produces a different result. Choosing your LEAST favorite candidate produces a different result. Organizing choices into good/bad produces different results.
Balancing then becomes something that can be done by asking the community. It's very difficult to balance games of that magnitude, simply because even your most exhaustive tests wont cover all of the cases. Having a properly established forum where users can give their opinions as well as having testers who watch out for balancing issues is probably the best way to go.
Oh, and if you want an abstract about the voting problem I mentioned, it's here:
http://www.cs.rochester.edu/~lane/computational-politics.html

How do you measure if an interface change improved or reduced usability?

For an ecommerce website how do you measure if a change to your site actually improved usability? What kind of measurements should you gather and how would you set up a framework for making this testing part of development?
Multivariate testing and reporting is a great way to actually measure these kind of things.
It allows you to test what combination of page elements has the greatest conversion rate, providing continual improvement on your site design and usability.
Google Web Optimiser has support for this.
Similar methods that you used to identify the usability problems to begin with-- usability testing. Typically you identify your use-cases and then have a lab study evaluating how users go about accomplishing certain goals. Lab testing is typically good with 8-10 people.
The more information methodology we have adopted to understand our users is to have anonymous data collection (you may need user permission, make your privacy policys clear, etc.) This is simply evaluating what buttons/navigation menus users click on, how users delete something (i.e. changing quantity - are more users entering 0 and updating quantity or hitting X)? This is a bit more complex to setup; you have to develop an infrastructure to hold this data (which is actually just counters, i.e. "Times clicked x: 138838383, Times entered 0: 390393") and allow data points to be created as needed to plug into the design.
To push the measurement of an improvement of a UI change up the stream from end-user (where the data gathering could take a while) to design or implementation, some simple heuristics can be used:
Is the number of actions it takes to perform a scenario less? (If yes, then it has improved). Measurement: # of steps reduced / added.
Does the change reduce the number of kinds of input devices to use (even if # of steps is the same)? By this, I mean if you take something that relied on both the mouse and keyboard and changed it to rely only on the mouse or only on the keyboard, then you have improved useability. Measurement: Change in # of devices used.
Does the change make different parts of the website consistent? E.g. If one part of the e-Commerce site loses changes made while you are not logged on and another part does not, this is inconsistent. Changing it so that they have the same behavior improves usability (preferably to the more fault tolerant please!). Measurement: Make a graph (flow chart really) mapping the ways a particular action could be done. Improvement is a reduction in the # of edges on the graph.
And so on... find some general UI tips, figure out some metrics like the above, and you can approximate usability improvement.
Once you have these design approximations of user improvement, and then gather longer term data, you can see if there is any predictive ability for the design-level usability improvements to the end-user reaction (like: Over the last 10 projects, we've seen an average of 1% quicker scenarios for each action removed, with a range of 0.25% and standard dev of 0.32%).
The first way can be fully subjective or partly quantified: user complaints and positive feedbacks. The problem with this is that you may have some strong biases when it comes to filter those feedbacks, so you better make as quantitative as possible. Having some ticketing system to file every report from the users and gathering statistics about each version of the interface might be useful. Just get your statistics right.
The second way is to measure the difference in a questionnaire taken about the interface by end-users. Answers to each question should be a set of discrete values and then again you can gather statistics for each version of the interface.
The latter way may be much harder to setup (designing a questionnaire and possibly the controlled environment for it as well as the guidelines to interpret the results is a craft by itself) but the former makes it unpleasantly easy to mess up with the measurements. For example, you have to consider the fact that the number of tickets you get for each version is dependent on the time it is used, and that all time ranges are not equal (e.g. a whole class of critical issues may never be discovered before the third or fourth week of usage, or users might tend not to file tickets the first days of use, even if they find issues, etc.).
Torial stole my answer. Although if there is a measure of how long it takes to do a certain task. If the time is reduced and the task is still completed, then that's a good thing.
Also, if there is a way to record the number of cancels, then that would work too.

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