TITLE:
Prediction of Rural Residents’ Consumption Expenditure Based on Lasso and Adaptive Lasso Methods
AUTHORS:
Xiaoting Tao, Haomin Zhang
KEYWORDS:
Lasso Method, Adaptive Lasso Method, Consumption, Prediction
JOURNAL NAME:
Open Journal of Statistics,
Vol.6 No.6,
December
27,
2016
ABSTRACT: When the variable of model is large, the
Lasso method and the Adaptive Lasso method can effectively select variables. This
paper prediction the rural residents’ consumption expenditure in China, based
on respectively using the Lasso method and the Adaptive Lasso method. The
results showed that both can effectively and accurately choose the appropriate
variable, but the Adaptive Lasso method is better than the Lasso method in
prediction accuracy and prediction error. It shows that in variable selection
and parameter estimation, Adaptive Lasso method is better than the Lasso
method.