%0 Report
%A Pérez Amaral, Teodosio
%A Gallo, Giampiero 
%A White, Halbert
%T A flexible tool for model building: the relevant transformation of the imputs network approach
%J Documentos de Trabajo del Instituto Complutense de Análisis Económico (ICAE)
%D 2003
%U https://hdl.handle.net/20.500.14352/64518
%X A new method, called Relevant Transformation of the Inputs Network Approach (RETINA) is proposed as a tool for model building. It is designed around flexibility (with nonlinear transformations of the predictors of interest), selective search within the range of possible models, out-of-sample forecasting ability and computational simplicity. In tests on simulated data, it shows both a high rate of successful retrieval of the DGP which increases with the sample size and a good performance relative to other alternative procedures. A telephone service demand model is built to show how the procedure applies on real data.
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