Forecasting 101: LASSO and Ridge Regressions – Quantitative Research

We are excited to introduce the Technical Series in Statistics and Econometrics from our Quantitative Research Division!

This semester, our Quantitative Research team will produce a series of three papers, each exploring econometric models used to forecast house prices in California. The first paper will focus on LASSO and Ridge regressions—two popular regularization techniques in linear regression. It will delve into the theory behind these models and apply them to a dataset containing various features of California homes, all in an effort to better forecast house prices.