Antoine Didisheim

Antoine Didisheim, Bryan Kelly, Semyon Malamud

We introduce a methodology for designing and training deep neural networks (DNN) that we call "Deep Regression Ensembles" (DRE). It bridges the gap between DNN and two-layer neural networks trained with random feature regression. Each layer of DRE has two components, randomly drawn input weights and output weights trained myopically (as if the final output layer) using linear ridge regression. Within a layer, each neuron uses a different subset of inputs and a different ridge penalty, constituting an ensemble of random feature ridge regressions. Our experiments show that a single DRE architecture is at par with or exceeds state-of-the-art DNN in many data sets. Yet, because DRE neural weights are either known in closed-form or randomly drawn, its computational cost is orders of magnitude smaller than DNN.

Hui Chen, Antoine Didisheim, Luciano Somoza et al.

Emerging techniques in computer science make it possible to "brain scan" large language models (LLMs), identify the plain-English concepts that guide their reasoning, and steer them while holding other factors constant. We show that this approach can map LLM-generated economic forecasts to concepts such as sentiment, technical analysis, and timing, and compute their relative importance without reducing performance. We also show that models can be steered to be more or less risk-averse, optimistic, or pessimistic, which allows researchers to correct or simulate biases. The method is transparent, lightweight, and replicable for empirical research in the social sciences.

Semyon Malamud, Teng Andrea Xu, Antoine Didisheim

Recent progress in Generative Artificial Intelligence (AI) relies on efficient data representations, often featuring encoder-decoder architectures. We formalize the mathematical problem of finding the optimal encoder-decoder pair and characterize its solution, which we name the "benign autoencoder" (BAE). We prove that BAE projects data onto a manifold whose dimension is the optimal compressibility dimension of the generative problem. We highlight surprising connections between BAE and several recent developments in AI, such as conditional GANs, context encoders, stable diffusion, stacked autoencoders, and the learning capabilities of generative models. As an illustration, we show how BAE can find optimal, low-dimensional latent representations that improve the performance of a discriminator under a distribution shift. By compressing "malignant" data dimensions, BAE leads to smoother and more stable gradients.