{"about":{"site":"https://codewithpapers.app","non_affiliation":"Code with Papers and Syntology are not affiliated with, endorsed by, or sponsored by Papers with Code, Meta, or the pwc-archive mirror.","licence":"CC BY-SA 4.0","licence_url":"https://creativecommons.org/licenses/by-sa/4.0/legalcode","attribution":"https://codewithpapers.app/attribution","modified":"archive material modified by Syntology; see the attribution page"},"url":"/paper/complexity-of-products-the-effect-of-data","title":"Complexity of products: the effect of data regularisation","arxiv_id":"1808.08249","date":"2018-10-15","proceeding":null,"authors":[],"abstract":"Among several developments, the field of Economic Complexity (EC) has notably\nseen the introduction of two new techniques. One is the Bootstrapped Selective\nPredictability Scheme (SPSb), which can provide quantitative forecasts of the\nGross Domestic Product of countries. The other, Hidden Markov Model (HMM)\nregularisation, denoises the datasets typically employed in the literature. We\ncontribute to EC along three different directions. First, we prove the\nconvergence of the SPSb algorithm to a well-known statistical learning\ntechnique known as Nadaraya-Watson Kernel regression. The latter has\nsignificantly lower time complexity, produces deterministic results, and it is\ninterchangeable with SPSb for the purpose of making predictions. Second, we\nstudy the effects of HMM regularization on the Product Complexity and logPRODY\nmetrics, for which a model of time evolution has been recently proposed. We\nfind confirmation for the original interpretation of the logPRODY model as\ndescribing the change in the global market structure of products with new\ninsights allowing a new interpretation of the Complexity measure, for which we\npropose a modification. Third, we explore new effects of regularisation on the\ndata. We find that it reduces noise, and observe for the first time that it\nincreases nestedness in the export network adjacency matrix.","url_abs":"http://arxiv.org/abs/1808.08249v2","url_pdf":"http://arxiv.org/pdf/1808.08249v2.pdf","source":{"archive":"pwc-archive (Hugging Face), CC BY-SA 4.0","snapshot":"2025-07-28","licence_url":"https://creativecommons.org/licenses/by-sa/4.0/legalcode","row_kind":"abstracts"},"code_links":[{"paper_slug":"complexity-of-products-the-effect-of-data","repo_url":"https://github.com/ganileni/ectools","is_official":0,"mentioned_in_paper":0,"mentioned_in_github":1,"framework":"none","reach":null}],"tasks":[],"methods":[],"datasets_introduced":[],"methods_introduced":[],"results":[],"syntology":{"atlas_url":null,"mcp":null,"developers":"https://syntology.ai/developers"},"arxiv_metadata":null,"syntology_extracted_results":null}