pwc-archive/papers-with-abstracts huggingface dataset:
PRIME: A Price-Reverting Impact Model of a cryptocurrency Exchange
Authors: Christopher J. Cho, Timothy J. Norman, Manuel Nunes
Date: 2023-05-12 00:00:00

In a financial exchange, market impact is a measure of the price change of an asset following a transaction. This is an important element of market microstructure, which determines the behaviour of the market following a trade. In this paper, we first provide a discussion on the market impact observed in the BTC/USD Futures market, then we present a novel multi-agent market simulation that can follow an underlying price series, whilst maintaining the ability to reproduce the market impact observed in the market in an explainable manner. This simulation of the financial exchange allows the model to interact realistically with market participants, helping its users better estimate market slippage as well as the knock-on consequences of their market actions. In turn, it allows various stakeholders such as industrial practitioners, governments and regulators to test their market hypotheses, without deploying capital or destabilising the system.
Systematic Review on Reinforcement Learning in the Field of Fintech
Authors: Nadeem Malibari, Iyad Katib, Rashid Mehmood
Date: 2023-04-29 00:00:00
Tasks: Decision Making, Management, Portfolio Optimization, Recommendation Systems, reinforcement-learning, Reinforcement Learning, Survey

Applications of Reinforcement Learning in the Finance Technology (Fintech) have acquired a lot of admiration lately. Undoubtedly Reinforcement Learning, through its vast competence and proficiency, has aided remarkable results in the field of Fintech. The objective of this systematic survey is to perform an exploratory study on a correlation between reinforcement learning and Fintech to highlight the prediction accuracy, complexity, scalability, risks, profitability and performance. Major uses of reinforcement learning in finance or Fintech include portfolio optimization, credit risk reduction, investment capital management, profit maximization, effective recommendation systems, and better price setting strategies. Several studies have addressed the actual contribution of reinforcement learning to the performance of financial institutions. The latest studies included in this survey are publications from 2018 onward. The survey is conducted using PRISMA technique which focuses on the reporting of reviews and is based on a checklist and four-phase flow diagram. The conducted survey indicates that the performance of RL-based strategies in Fintech fields proves to perform considerably better than other state-of-the-art algorithms. The present work discusses the use of reinforcement learning algorithms in diverse decision-making challenges in Fintech and concludes that the organizations dealing with finance can benefit greatly from Robo-advising, smart order channelling, market making, hedging and options pricing, portfolio optimization, and optimal execution.
Robust Equilibrium Strategy for Mean-Variance Portfolio Selection
Authors: Mengge Li, Shuaijie Qian, Chao Zhou
Date: 2023-05-11 00:00:00

The classical mean-variance portfolio selection problem induces time-inconsistent (precommited) strategies (see Zhou and Li (2000)). To overcome this time-inconsistency, Basak and Chabakauri (2010) introduce the game theoretical approach and look for (sub-game perfect Nash) equilibrium strategies, which is solved from the corresponding partial differential equations (PDE) system. In their model, the investor perfectly knows the drift and volatility of the assets. However, in reality investors only have an estimate on them, e.g, a 95% confidence interval. In this case, some literature (e.g., Pham, Wei and Zhou (2022)) derives the optimal precommited strategy under the worst parameters, which is the robust control. The relation between the equilibrium strategy and the PDE system has not been justified when incorporating robust control. In this paper, we consider a general dynamic mean-variance framework and propose a novel definition of the robust equilibrium strategy. Under our definition, a classical solution to the corresponding PDE system implies a robust equilibrium strategy. We then explicitly solve for some special examples.
Beyond Prompts: Exploring the Design Space of Mixed-Initiative Co-Creativity Systems
Authors: Zhiyu Lin, Upol Ehsan, Rohan Agarwal, Samihan Dani, Vidushi Vashishth, Mark Riedl
Date: 2023-05-03 00:00:00

Generative Artificial Intelligence systems have been developed for image, code, story, and game generation with the goal of facilitating human creativity. Recent work on neural generative systems has emphasized one particular means of interacting with AI systems: the user provides a specification, usually in the form of prompts, and the AI system generates the content. However, there are other configurations of human and AI coordination, such as co-creativity (CC) in which both human and AI systems can contribute to content creation, and mixed-initiative (MI) in which both human and AI systems can initiate content changes. In this paper, we define a hypothetical human-AI configuration design space consisting of different means for humans and AI systems to communicate creative intent to each other. We conduct a human participant study with 185 participants to understand how users want to interact with differently configured MI-CC systems. We find out that MI-CC systems with more extensive coverage of the design space are rated higher or on par on a variety of creative and goal-completion metrics, demonstrating that wider coverage of the design space can improve user experience and achievement when using the system; Preference varies greatly between expertise groups, suggesting the development of adaptive, personalized MI-CC systems; Participants identified new design space dimensions including scrutability -- the ability to poke and prod at models -- and explainability.
On Expressivity of Height in Neural Networks
Authors: Feng-Lei Fan, Ze-Yu Li, Huan Xiong, Tieyong Zeng
Date: 2023-05-11 00:00:00

In this work, beyond width and depth, we augment a neural network with a new dimension called height by intra-linking neurons in the same layer to create an intra-layer hierarchy, which gives rise to the notion of height. We call a neural network characterized by width, depth, and height a 3D network. To put a 3D network in perspective, we theoretically and empirically investigate the expressivity of height. We show via bound estimation and explicit construction that given the same number of neurons and parameters, a 3D ReLU network of width $W$, depth $K$, and height $H$ has greater expressive power than a 2D network of width $H\times W$ and depth $K$, \textit{i.e.}, $\mathcal{O}((2^H-1)W)^K)$ vs $\mathcal{O}((HW)^K)$, in terms of generating more pieces in a piecewise linear function. Next, through approximation rate analysis, we show that by introducing intra-layer links into networks, a ReLU network of width $\mathcal{O}(W)$ and depth $\mathcal{O}(K)$ can approximate polynomials in $[0,1]^d$ with error $\mathcal{O}\left(2^{-2WK}\right)$, which improves $\mathcal{O}\left(W^{-K}\right)$ and $\mathcal{O}\left(2^{-K}\right)$ for fixed width networks. Lastly, numerical experiments on 5 synthetic datasets, 15 tabular datasets, and 3 image benchmarks verify that 3D networks can deliver competitive regression and classification performance.
Fairness in Machine Learning meets with Equity in Healthcare
Authors: Shaina Raza, Parisa Osivand Pour, Syed Raza Bashir
Date: 2023-05-11 00:00:00
Tasks: Fairness

With the growing utilization of machine learning in healthcare, there is increasing potential to enhance healthcare outcomes. However, this also brings the risk of perpetuating biases in data and model design that can harm certain demographic groups based on factors such as age, gender, and race. This study proposes an artificial intelligence framework, grounded in software engineering principles, for identifying and mitigating biases in data and models while ensuring fairness in healthcare settings. A case study is presented to demonstrate how systematic biases in data can lead to amplified biases in model predictions, and machine learning methods are suggested to prevent such biases. Future research aims to test and validate the proposed ML framework in real-world clinical settings to evaluate its impact on promoting health equity.
Promise and Limitations of Supervised Optimal Transport-Based Graph Summarization via Information Theoretic Measures
Authors: Sepideh Neshatfar, Abram Magner, Salimeh Yasaei Sekeh
Date: 2023-05-11 00:00:00
Tasks: Attribute

Graph summarization is the problem of producing smaller graph representations of an input graph dataset, in such a way that the smaller compressed graphs capture relevant structural information for downstream tasks. There is a recent graph summarization method that formulates an optimal transport-based framework that allows prior information about node, edge, and attribute importance (never defined in that work) to be incorporated into the graph summarization process. However, very little is known about the statistical properties of this framework. To elucidate this question, we consider the problem of supervised graph summarization, wherein by using information theoretic measures we seek to preserve relevant information about a class label. To gain a theoretical perspective on the supervised summarization problem itself, we first formulate it in terms of maximizing the Shannon mutual information between the summarized graph and the class label. We show an NP-hardness of approximation result for this problem, thereby constraining what one should expect from proposed solutions. We then propose a summarization method that incorporates mutual information estimates between random variables associated with sample graphs and class labels into the optimal transport compression framework. We empirically show performance improvements over previous works in terms of classification accuracy and time on synthetic and certain real datasets. We also theoretically explore the limitations of the optimal transport approach for the supervised summarization problem and we show that it fails to satisfy a certain desirable information monotonicity property.
Towards Understanding and Improving GFlowNet Training
Authors: Max W. Shen, Emmanuel Bengio, Ehsan Hajiramezanali, Andreas Loukas, Kyunghyun Cho, Tommaso Biancalani
Date: 2023-05-11 00:00:00

Generative flow networks (GFlowNets) are a family of algorithms that learn a generative policy to sample discrete objects $x$ with non-negative reward $R(x)$. Learning objectives guarantee the GFlowNet samples $x$ from the target distribution $p^*(x) \propto R(x)$ when loss is globally minimized over all states or trajectories, but it is unclear how well they perform with practical limits on training resources. We introduce an efficient evaluation strategy to compare the learned sampling distribution to the target reward distribution. As flows can be underdetermined given training data, we clarify the importance of learned flows to generalization and matching $p^*(x)$ in practice. We investigate how to learn better flows, and propose (i) prioritized replay training of high-reward $x$, (ii) relative edge flow policy parametrization, and (iii) a novel guided trajectory balance objective, and show how it can solve a substructure credit assignment problem. We substantially improve sample efficiency on biochemical design tasks.
A Hierarchical Approach for Dynamic Fault Trees Solution through Semi-Markov Process
Authors: Koorosh Aslansefat; Gholam-Reza Latif-Shabgahi
Date: 2020-09-01 00:00:00
Proceeding: IEEE TRANSACTIONS ON RELIABILITY 2020 9

Dynamic fault tree (DFT) is a top-down deductive technique extended to model systems with complex failure behaviors and interactions. In two last decades, different methods have been applied to improve its capabilities, such as computational complexity reduction, modularization, intricate failure distribution, and reconfiguration. This paper uses semi-Markov process (SMP) theorem for DFT solution with the motivation of obviating the model state-explosion, considering nonexponential failure distribution through a hierarchical solution. In addition, in the proposed method, a universal SMP for static and dynamic gates is introduced, which can generalize dynamic behaviors like functional dependencies, sequences, priorities, and spares in a single model. The efficiency of the method regarding precision and competitiveness with commercial tools, repeated events consideration, computational complexity reduction, nonexponential failure distribution consideration, and repairable events in DFT is studied by a number of examples, and the results are then compared to those of the selected existing methods.
Learning to Simulate Natural Language Feedback for Interactive Semantic Parsing
Authors: Hao Yan, Saurabh Srivastava, Yintao Tai, Sida I. Wang, Wen-tau Yih, Ziyu Yao
Date: 2023-05-14 00:00:00
Tasks: Semantic Parsing, Text to SQL, Text-To-SQL

Interactive semantic parsing based on natural language (NL) feedback, where users provide feedback to correct the parser mistakes, has emerged as a more practical scenario than the traditional one-shot semantic parsing. However, prior work has heavily relied on human-annotated feedback data to train the interactive semantic parser, which is prohibitively expensive and not scalable. In this work, we propose a new task of simulating NL feedback for interactive semantic parsing. We accompany the task with a novel feedback evaluator. The evaluator is specifically designed to assess the quality of the simulated feedback, based on which we decide the best feedback simulator from our proposed variants. On a text-to-SQL dataset, we show that our feedback simulator can generate high-quality NL feedback to boost the error correction ability of a specific parser. In low-data settings, our feedback simulator can help achieve comparable error correction performance as trained using the costly, full set of human annotations.
Towards Understanding the Generalization of Graph Neural Networks
Authors: Huayi Tang, Yong liu
Date: 2023-05-14 00:00:00
Tasks: Stochastic Optimization, Transductive Learning

Graph neural networks (GNNs) are the most widely adopted model in graph-structured data oriented learning and representation. Despite their extraordinary success in real-world applications, understanding their working mechanism by theory is still on primary stage. In this paper, we move towards this goal from the perspective of generalization. To be specific, we first establish high probability bounds of generalization gap and gradients in transductive learning with consideration of stochastic optimization. After that, we provide high probability bounds of generalization gap for popular GNNs. The theoretical results reveal the architecture specific factors affecting the generalization gap. Experimental results on benchmark datasets show the consistency between theoretical results and empirical evidence. Our results provide new insights in understanding the generalization of GNNs.
Parameter-Efficient Fine-Tuning with Layer Pruning on Free-Text Sequence-to-Sequence Modeling
Authors: Yunqi Zhu, Xuebing Yang, Yuanyuan Wu, Wensheng Zhang
Date: 2023-05-15 00:00:00
Tasks: Dialogue Generation, GPU, parameter-efficient fine-tuning, Question Answering

The increasing size of language models raises great research interests in parameter-efficient fine-tuning such as LoRA that freezes the pre-trained model, and injects small-scale trainable parameters for multiple downstream tasks (e.g., summarization, question answering and translation). To further enhance the efficiency of fine-tuning, we propose a framework that integrates LoRA and structured layer pruning. The integrated framework is validated on two created deidentified medical report summarization datasets based on MIMIC-IV-Note and two public medical dialogue datasets. By tuning 0.6% parameters of the original model and pruning over 30% Transformer-layers, our framework can reduce 50% of GPU memory usage and speed up 100% of the training phase, while preserving over 92% generation qualities on free-text sequence-to-sequence tasks.
SRRM: Semantic Region Relation Model for Indoor Scene Recognition
Authors: Chuanxin Song, Xin Ma
Date: 2023-05-15 00:00:00
Tasks: Relation, Scene Recognition, Semantic Segmentation

Despite the remarkable success of convolutional neural networks in various computer vision tasks, recognizing indoor scenes still presents a significant challenge due to their complex composition. Consequently, effectively leveraging semantic information in the scene has been a key issue in advancing indoor scene recognition. Unfortunately, the accuracy of semantic segmentation has limited the effectiveness of existing approaches for leveraging semantic information. As a result, many of these approaches remain at the stage of auxiliary labeling or co-occurrence statistics, with few exploring the contextual relationships between the semantic elements directly within the scene. In this paper, we propose the Semantic Region Relationship Model (SRRM), which starts directly from the semantic information inside the scene. Specifically, SRRM adopts an adaptive and efficient approach to mitigate the negative impact of semantic ambiguity and then models the semantic region relationship to perform scene recognition. Additionally, to more comprehensively exploit the information contained in the scene, we combine the proposed SRRM with the PlacesCNN module to create the Combined Semantic Region Relation Model (CSRRM), and propose a novel information combining approach to effectively explore the complementary contents between them. CSRRM significantly outperforms the SOTA methods on the MIT Indoor 67, reduced Places365 dataset, and SUN RGB-D without retraining. The code is available at: https://github.com/ChuanxinSong/SRRM
No-Reference Point Cloud Quality Assessment via Weighted Patch Quality Prediction
Authors: Jun Cheng, Honglei Su, Jari Korhonen
Date: 2023-05-13 00:00:00
Tasks: Point Cloud Quality Assessment

With the rapid development of 3D vision applications based on point clouds, point cloud quality assessment(PCQA) is becoming an important research topic. However, the prior PCQA methods ignore the effect of local quality variance across different areas of the point cloud. To take an advantage of the quality distribution imbalance, we propose a no-reference point cloud quality assessment (NR-PCQA) method with local area correlation analysis capability, denoted as COPP-Net. More specifically, we split a point cloud into patches, generate texture and structure features for each patch, and fuse them into patch features to predict patch quality. Then, we gather the features of all the patches of a point cloud for correlation analysis, to obtain the correlation weights. Finally, the predicted qualities and correlation weights for all the patches are used to derive the final quality score. Experimental results show that our method outperforms the state-of-the-art benchmark NR-PCQA methods. The source code for the proposed COPP-Net can be found at https://github.com/philox12358/COPP-Net.
Unsupervised Sentence Representation Learning with Frequency-induced Adversarial Tuning and Incomplete Sentence Filtering
Authors: Bing Wang, Ximing Li, Zhiyao Yang, Yuanyuan Guan, Jiayin Li, Shengsheng Wang
Date: 2023-05-15 00:00:00
Tasks: Language Modelling, Representation Learning, Sentence, Sentence Embeddings

Pre-trained Language Model (PLM) is nowadays the mainstay of Unsupervised Sentence Representation Learning (USRL). However, PLMs are sensitive to the frequency information of words from their pre-training corpora, resulting in anisotropic embedding space, where the embeddings of high-frequency words are clustered but those of low-frequency words disperse sparsely. This anisotropic phenomenon results in two problems of similarity bias and information bias, lowering the quality of sentence embeddings. To solve the problems, we fine-tune PLMs by leveraging the frequency information of words and propose a novel USRL framework, namely Sentence Representation Learning with Frequency-induced Adversarial tuning and Incomplete sentence filtering (SLT-FAI). We calculate the word frequencies over the pre-training corpora of PLMs and assign words thresholding frequency labels. With them, (1) we incorporate a similarity discriminator used to distinguish the embeddings of high-frequency and low-frequency words, and adversarially tune the PLM with it, enabling to achieve uniformly frequency-invariant embedding space; and (2) we propose a novel incomplete sentence detection task, where we incorporate an information discriminator to distinguish the embeddings of original sentences and incomplete sentences by randomly masking several low-frequency words, enabling to emphasize the more informative low-frequency words. Our SLT-FAI is a flexible and plug-and-play framework, and it can be integrated with existing USRL techniques. We evaluate SLT-FAI with various backbones on benchmark datasets. Empirical results indicate that SLT-FAI can be superior to the existing USRL baselines. Our code is released in \url{https://github.com/wangbing1416/SLT-FAI}.
Topological Interpretability for Deep-Learning
Authors: Adam Spannaus, Heidi A. Hanson, Lynne Penberthy, Georgia Tourassi
Date: 2023-05-15 00:00:00
Tasks: Decision Making, Deep Learning, Medical Diagnosis

With the growing adoption of AI-based systems across everyday life, the need to understand their decision-making mechanisms is correspondingly increasing. The level at which we can trust the statistical inferences made from AI-based decision systems is an increasing concern, especially in high-risk systems such as criminal justice or medical diagnosis, where incorrect inferences may have tragic consequences. Despite their successes in providing solutions to problems involving real-world data, deep learning (DL) models cannot quantify the certainty of their predictions. These models are frequently quite confident, even when their solutions are incorrect. This work presents a method to infer prominent features in two DL classification models trained on clinical and non-clinical text by employing techniques from topological and geometric data analysis. We create a graph of a model's feature space and cluster the inputs into the graph's vertices by the similarity of features and prediction statistics. We then extract subgraphs demonstrating high-predictive accuracy for a given label. These subgraphs contain a wealth of information about features that the DL model has recognized as relevant to its decisions. We infer these features for a given label using a distance metric between probability measures, and demonstrate the stability of our method compared to the LIME and SHAP interpretability methods. This work establishes that we may gain insights into the decision mechanism of a DL model. This method allows us to ascertain if the model is making its decisions based on information germane to the problem or identifies extraneous patterns within the data.