Constructive Data Mining: Modeling Consumers' Expenditure in Venezuela

Posted: 5 Dec 2000

See all articles by Julia Campos

Julia Campos

University of Salamanca - Department of Economics and Economic History

Neil R. Ericsson

Board of Governors of the Federal Reserve System

Multiple version iconThere are 2 versions of this paper

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.

JEL Classification: C5, E21

Suggested Citation

Campos Fernández, Julia and Ericsson, Neil R., Constructive Data Mining: Modeling Consumers' Expenditure in Venezuela. Available at SSRN: https://ssrn.com/abstract=250587

Julia Campos Fernández

University of Salamanca - Department of Economics and Economic History ( email )

Facultad de Economia y Empresa
Salamanca 37008
Spain

Neil R. Ericsson (Contact Author)

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States
202-452-3709 (Phone)
202-736-5638 (Fax)

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