Instruct: Identify the main and secondary category of Arxiv papers based on the titles and abstracts
Query: Evaluating Conditional Cash Transfer Policies with Machine Learning
  Methods   This paper presents an out-of-sample prediction comparison between major
machine learning models and the structural econometric model. Over the past
decade, machine learning has established itself as a powerful tool in many
prediction applications, but this approach is still not widely adopted in
empirical economic studies. To evaluate the benefits of this approach, I use
the most common machine learning algorithms, CART, C4.5, LASSO, random forest,
and adaboost, to construct prediction models for a cash transfer experiment
conducted by the Progresa program in Mexico, and I compare the prediction
results with those of a previous structural econometric study. Two prediction
tasks are performed in this paper: the out-of-sample forecast and the long-term
within-sample simulation. For the out-of-sample forecast, both the mean
absolute error and the root mean square error of the school attendance rates
found by all machine learning models are smaller than those found by the
structural model. Random forest and adaboost have the highest accuracy for the
individual outcomes of all subgroups. For the long-term within-sample
simulation, the structural model has better performance than do all of the
machine learning models. The poor within-sample fitness of the machine learning
model results from the inaccuracy of the income and pregnancy prediction
models. The result shows that the machine learning model performs better than
does the structural model when there are many data to learn; however, when the
data are limited, the structural model offers a more sensible prediction. The
findings of this paper show promise for adopting machine learning in economic
policy analyses in the era of big data.

5
The categories of this paper are: gr-qc
25
The categories of this paper are: patt-sol
6
The categories of this paper are: astro-ph
2
The categories of this paper are: math
20
The categories of this paper are: acc-phys
12
The categories of this paper are: nucl-th
3
The categories of this paper are: physics
22
The categories of this paper are: chao-dyn
36
The categories of this paper are: cmp-lg
29
The categories of this paper are: funct-an
23
The categories of this paper are: solv-int
19
The categories of this paper are: eess
33
The categories of this paper are: plasm-ph
14
The categories of this paper are: math-ph
1
The categories of this paper are: cs
27
The categories of this paper are: comp-gas