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A new economic and financial theory of money

arXiv.org Artificial Intelligence

This paper fundamentally reformulates economic and financial theory to include electronic currencies. The valuation of the electronic currencies will be based on macroeconomic theory and the fundamental equation of monetary policy, not the microeconomic theory of discounted cash flows. The view of electronic currency as a transactional equity associated with tangible assets of a sub-economy will be developed, in contrast to the view of stock as an equity associated mostly with intangible assets of a sub-economy. The view will be developed of the electronic currency management firm as an entity responsible for coordinated monetary (electronic currency supply and value stabilization) and fiscal (investment and operational) policies of a substantial (for liquidity of the electronic currency) sub-economy. The risk model used in the valuations and the decision-making will not be the ubiquitous, yet inappropriate, exponential risk model that leads to discount rates, but will be multi time scale models that capture the true risk. The decision-making will be approached from the perspective of true systems control based on a system response function given by the multi scale risk model and system controllers that utilize the Deep Reinforcement Learning, Generative Pretrained Transformers, and other methods of Artificial Intelligence (DRL/GPT/AI). Finally, the sub-economy will be viewed as a nonlinear complex physical system with both stable equilibriums that are associated with short-term exploitation, and unstable equilibriums that need to be stabilized with active nonlinear control based on the multi scale system response functions and DRL/GPT/AI.


BoundMPC: Cartesian Trajectory Planning with Error Bounds based on Model Predictive Control in the Joint Space

arXiv.org Artificial Intelligence

This work presents a novel online model-predictive trajectory planner for robotic manipulators called BoundMPC. This planner allows the collision-free following of Cartesian reference paths in the end-effector's position and orientation, including via-points, within desired asymmetric bounds of the orthogonal path error. The path parameter synchronizes the position and orientation reference paths. The decomposition of the path error into the tangential direction, describing the path progress, and the orthogonal direction, which represents the deviation from the path, is well known for the position from the path-following control in the literature. This paper extends this idea to the orientation by utilizing the Lie theory of rotations. Moreover, the orthogonal error plane is further decomposed into basis directions to define asymmetric Cartesian error bounds easily. Using piecewise linear position and orientation reference paths with via-points is computationally very efficient and allows replanning the pose trajectories during the robot's motion. This feature makes it possible to use this planner for dynamically changing environments and varying goals. The flexibility and performance of BoundMPC are experimentally demonstrated by two scenarios on a 7-DoF Kuka LBR iiwa 14 R820 robot. The first scenario shows the transfer of a larger object from a start to a goal pose through a confined space where the object must be tilted. The second scenario deals with grasping an object from a table where the grasping point changes during the robot's motion, and collisions with other obstacles in the scene must be avoided.


Learning Performance-Oriented Control Barrier Functions Under Complex Safety Constraints and Limited Actuation

arXiv.org Artificial Intelligence

Control barrier functions (CBFs) are a powerful tool to enforce safety constraints for nonlinear control systems (Ames et al., 2019), with many successful applications in autonomous driving (Xiao et al., 2021), UAV navigation (Xu and Sreenath, 2018), robot locomotion (Grandia et al., 2021), and safe reinforcement learning (Marvi and Kiumarsi, 2021). For control-affine nonlinear systems, CBFs can be used to construct a convex quadratic programming (QP)-based safety filter that can be deployed online to safeguard against potentially unsafe control commands. The induced safety filter, which we denote as CBF-QP, guarantees that the closed-loop system remains in a safe control invariant set by correcting a reference controller online. While CBFs provide an efficient method to ensure safety, in general, it is difficult to find such functions. As the complexity of both the environment and the dynamics increases, we are faced with the following challenges: (C1) Complex safety specifications: CBFs inherently handle single constraint functions, but complex environments often involve multiple constraints. In this work, we consider specifications that are described by the composition of multiple constraints through Boolean logical operations such as AND, OR, and negation, which can capture complex constraints. Shaoru Chen is with Microsoft Research, 300 Lafayette Street, New York, NY, 10012, USA.


Multi-objective Feature Selection in Remote Health Monitoring Applications

arXiv.org Artificial Intelligence

Radio frequency (RF) signals have facilitated the development of non-contact human monitoring tasks, such as vital signs measurement, activity recognition, and user identification. In some specific scenarios, an RF signal analysis framework may prioritize the performance of one task over that of others. In response to this requirement, we employ a multi-objective optimization approach inspired by biological principles to select discriminative features that enhance the accuracy of breathing patterns recognition while simultaneously impeding the identification of individual users. This approach is validated using a novel vital signs dataset consisting of 50 subjects engaged in four distinct breathing patterns. Our findings indicate a remarkable result: a substantial divergence in accuracy between breathing recognition and user identification. As a complementary viewpoint, we present a contrariwise result to maximize user identification accuracy and minimize the system's capacity for breathing activity recognition.


Correlated Quantization for Faster Nonconvex Distributed Optimization

arXiv.org Artificial Intelligence

Quantization (Alistarh et al., 2017) is an important (stochastic) compression technique that reduces the volume of transmitted bits during each communication round in distributed model training. Suresh et al. (2022) introduce correlated quantizers and show their advantages over independent counterparts by analyzing distributed SGD communication complexity. We analyze the forefront distributed non-convex optimization algorithm MARINA (Gorbunov et al., 2022) utilizing the proposed correlated quantizers and show that it outperforms the original MARINA and distributed SGD of Suresh et al. (2022) with regard to the communication complexity. We significantly refine the original analysis of MARINA without any additional assumptions using the weighted Hessian variance (Tyurin et al., 2022), and then we expand the theoretical framework of MARINA to accommodate a substantially broader range of potentially correlated and biased compressors, thus dilating the applicability of the method beyond the conventional independent unbiased compressor setup. Extensive experimental results corroborate our theoretical findings.


Learning effective good variables from physical data

arXiv.org Artificial Intelligence

We assume that a sufficiently large database is available, where a physical property of interest and a number of associated ruling primitive variables or observables are stored. We introduce and test two machine learning approaches to discover possible groups or combinations of primitive variables: The first approach is based on regression models whereas the second on classification models. The variable group (here referred to as the new effective good variable) can be considered as successfully found, when the physical property of interest is characterized by the following effective invariant behaviour: In the first method, invariance of the group implies invariance of the property up to a given accuracy; in the other method, upon partition of the physical property values into two or more classes, invariance of the group implies invariance of the class. For the sake of illustration, the two methods are successfully applied to two popular empirical correlations describing the convective heat transfer phenomenon and to the Newton's law of universal gravitation.


MISS: Multiclass Interpretable Scoring Systems

arXiv.org Artificial Intelligence

In this work, we present a novel, machine-learning approach for constructing Multiclass Interpretable Scoring Systems (MISS) - a fully data-driven methodology for generating single, sparse, and user-friendly scoring systems for multiclass classification problems. Scoring systems are commonly utilized as decision support models in healthcare, criminal justice, and other domains where interpretability of predictions and ease of use are crucial. Prior methods for data-driven scoring, such as SLIM (Supersparse Linear Integer Model), were limited to binary classification tasks and extensions to multiclass domains were primarily accomplished via one-versus-all-type techniques. The scores produced by our method can be easily transformed into class probabilities via the softmax function. We demonstrate techniques for dimensionality reduction and heuristics that enhance the training efficiency and decrease the optimality gap, a measure that can certify the optimality of the model. Our approach has been extensively evaluated on datasets from various domains, and the results indicate that it is competitive with other machine learning models in terms of classification performance metrics and provides well-calibrated class probabilities.


Learning to Configure Mathematical Programming Solvers by Mathematical Programming

arXiv.org Artificial Intelligence

We discuss the issue of finding a good mathematical programming solver configuration for a particular instance of a given problem, and we propose a two-phase approach to solve it. In the first phase we learn the relationships between the instance, the configuration and the performance of the configured solver on the given instance. A specific difficulty of learning a good solver configuration is that parameter settings may not all be independent; this requires enforcing (hard) constraints, something that many widely used supervised learning methods cannot natively achieve. We tackle this issue in the second phase of our approach, where we use the learnt information to construct and solve an optimization problem having an explicit representation of the dependency/consistency constraints on the configuration parameter settings. We discuss computational results for two different instantiations of this approach on a unit commitment problem arising in the short-term planning of hydro valleys. We use logistic regression as the supervised learning methodology and consider CPLEX as the solver of interest.


AdaFed: Fair Federated Learning via Adaptive Common Descent Direction

arXiv.org Artificial Intelligence

Federated learning (FL) is a promising technology via which some edge devices/clients collaboratively train a machine learning model orchestrated by a server. Learning an unfair model is known as a critical problem in federated learning, where the trained model may unfairly advantage or disadvantage some of the devices. To tackle this problem, in this work, we propose AdaFed. The goal of AdaFed is to find an updating direction for the server along which (i) all the clients' loss functions are decreasing; and (ii) more importantly, the loss functions for the clients with larger values decrease with a higher rate. AdaFed adaptively tunes this common direction based on the values of local gradients and loss functions. We validate the effectiveness of AdaFed on a suite of federated datasets, and demonstrate that AdaFed outperforms state-of-the-art fair FL methods.


A Universal Cooperative Decision-Making Framework for Connected Autonomous Vehicles with Generic Road Topologies

arXiv.org Artificial Intelligence

--Cooperative decision-making of Connected Autonomous V ehicles (CA Vs) presents a longstanding challenge due to its inherent nonlinearity, non-convexity, and discrete characteristics, compounded by the diverse road topologies encountered in real-world traffic scenarios. The majority of current methodologies are only applicable to a single and specific scenario, predicated on scenario-specific assumptions. Consequently, their application in real-world environments is restricted by the innumerable nature of traffic scenarios. In this study, we propose a unified optimization approach that exhibits the potential to address cooperative decision-making problems related to traffic scenarios with generic road topologies. This development is grounded in the premise that the topologies of various traffic scenarios can be universally represented as Directed Acyclic Graphs (DAGs). Particularly, the reference paths and time profiles for all involved CA Vs are determined in a fully cooperative manner, taking into account factors such as velocities, accelerations, conflict resolutions, and overall traffic efficiency. The cooperative decision-making of CA Vs is approximated as a mixed-integer linear programming (MILP) problem building on the DAGs of road topologies. This favorably facilitates the use of standard numerical solvers and the global optimality can be attained through the optimization. Case studies corresponding to different multi-lane traffic scenarios featuring diverse topologies are scheduled as the test itineraries, and the efficacy of our proposed methodology is corroborated. Index T erms --Autonomous driving, multi-agent systems, connected autonomous vehicles, cooperative decision-making, non-convex optimization, mixed-integer linear programming (MILP). The rapid developments of information technology and artificial intelligence prompt the emergency of connected autonomous vehicles (CA Vs), which enable autonomous driving in a cooperative manner. Widely recognized as a promising direction within future transportation systems, CA Vs are capable of communicating their driving intentions in real-time with other CA Vs, road infrastructures, and cloud devices through V ehicle-to-everything (V2X) [1], [2]. As a result, swarm intelligence is enabled and important driving decisions can be made cooperatively to enhance safety, traffic efficiency, and passenger comfort. Zhenmin Huang, Shaojie Shen, and Jun Ma are with the Department of Electronic and Computer Engineering, The Hong Kong University of Science and Technology, Hong Kong SAR, China (e-mail: zhuangdf@connect.ust.hk; This work has been submitted to the IEEE for possible publication.