arXiv Machine Learning

Learned Monotone Recurrent Features in Governed Credit Scoring: The Price of the Frame and the Necessity of Macro Conditioning

arXiv Machine Learning
Oct 9

Measuring Learned Monotone Temporal Aggregation at Matched Admissibility

The paper evaluates a recurrent network that learns monotone temporal aggregation for risk scoring, comparing it to hand‑crafted monotone aggregates used in deployed pipelines. Functional regression shows the learned channel can reproduce the geometrically weighted separable family of engineered statistics with Spearman ρ ≥ 0.996, while it struggles with consecutivity, time localization, and exposure floor, all of which can be fixed with an admissible basis. In practice, the learned aggregator matches or exceeds engineered counterparts in full‑sample scenarios, offers modest AUC gains in certain decay regions, and maintains performance where tree‑ensemble scores flatten.

By Yew Lee Tan
arXiv AI
Aug 21

Credit Without Ground Truth: Auditing Step-Level Credit Assignment in LLM Agents Against Executed Replay

arXiv:2608. 19760v1 Announce Type: cross Abstract: Audited against causal ground truth from executed replay in a single-agent tool environment (ALFWorld), none of the step-level credit signals used to train LLM agents -- LLM-judge scores, outcome-conditioned logprob ratios, or the policy's own confidence -- identifies which steps causally matter better than chance.

By Haiyue Zhang
arXiv AI
Sep 7

FinalityBench: An Effect-Level Benchmark for Agent Decisions Under Delayed and Conflicting Financial Finality

FinalityBench is an executable benchmark that tests how agents decide on shipping, re‑capturing, refunding, or waiting when a merchant’s payment processor, ledger, ERP, and bank feed receive delayed, duplicated, dropped, or reordered messages, causing contradictory beliefs about an order. The benchmark uses a hidden canonical event log and faulted delivery streams to generate system views, scoring each episode by the merchant’s terminal economic position relative to a privileged reference. It contains 321 tasks, including 45 twin pairs where all four views are identical yet the correct disposition differs, and evaluates nine programmatic policies, revealing that a ship‑on‑first‑sign policy performs best by accuracy but worst by paired loss, while a runtime‑gated irreversible‑action policy achieves 85.4% accuracy without losing money.

By Abhishek Sharma
arXiv Machine Learning
Oct 12

Market Impact Estimation via Causal Foundation Models

The paper introduces a Causal Market Simulator using a continuous‑time causal prior‑data fitted network (PFN) to estimate market impact, addressing bias from informational flow that traditional models overlook. On a synthetic market prior with adjustable confounding, the PFN matches an unbiased oracle while a naive estimator overestimates by up to 68%. In zero‑shot tests on real limit‑order books and equity data, the model’s intervention responses align with ground‑truth scales and improve correlation with measured impact when a recurrent state‑space variant is used.

By Dennis Thumm, Ying Chen