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Integrating Reward Maximization and Population Estimation: Sequential Decision-Making for Internal Revenue Service Audit Selection

AAAI 2023 · Reinforcement learning › Policy gradient and actor-critic · approach: Confounding-robust policy evaluation · 5 citations (OpenAlex)

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Measured effects reported in the paper

What was changedWhereMeasuredEffect
Use ABS with Horvitz–Thompson population estimation instead of greedy selection with model-based estimationIRS audit selection · IRS NRPpopulation estimate absolute mean percent difference: 16.4 -> 0.4Helped
Use ABS-1 instead of ε-only random selection for an unbiased population estimateIRS audit selection · IRS NRPcumulative reward: $41.3M* -> $41.5M*No clear effect
Use ABS rather than the best ε-only unbiased estimatorIRS audit selection · IRS NRPpopulation estimate percent difference standard deviation: 16% lower varianceHelped
Add even a 10% random sample to greedy selectionIRS audit selection · IRS NRPpopulation estimate bias: more than 2.5× reductionHelped
Use model-based population estimation without randomized samplingGreedy, ε-greedy, and UCB · IRS NRPpopulation estimate bias: Greedy: 16.4; UCB-1: 15.3; UCB-2: 15.6Hurt
Increase the ABS reward emphasis using more reward-optimal hyperparameter settings (ablation)ABS · IRS NRPpopulation estimate varianceHurt
Add trimming to ABS to impose a minimum sampling probability across bins (ablation)ABS · IRS NRPcumulative reward: 3.2x rewardHelped
Use Random Forest Regression rather than LDA for reward predictionIRS audit selection · IRS NRPcumulative reward: RF Greedy selects between $1.8M and $9.4M more cumulative TPI than LDA GreedyHelped
Use optimism-based UCB rather than RF GreedyIRS audit selection · IRS NRPcumulative reward: $42.4M* vs $43.6M*No clear effect
Use UCB rather than ABS-1 for the income prediction taskCPS dataset · CPSReward: 473 vs 431Helped
Use ABS-1 rather than UCB for the income prediction taskCPS dataset · CPSBias: 13.4 -> 0.2Helped
Use Thompson sampling rather than ABS-1 for the income prediction taskCPS dataset · CPSReward: 427.2 vs 431No clear effect

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