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Does Machine Learning Automate Moral Hazard and Error?

Sendhil Mullainathan1; Ziad Obermeyer2

1 Harvard University, Littauer Center M-18, Cambridge, MA 02138 (e-mail: ) · 2 Harvard Medical School, 75 Francis Street, Neville House, Boston, MA 02138 and Brigham and Women's Hospital (e-mail: )

American Economic Review 2017 open access

Machine learning tools are beginning to be deployed en masse in health care. While the statistical underpinnings of these techniques have been questioned with regard to causality and stability, we highlight a different concern here, relating to measurement issues. A characteristic feature of health data, unlike other applications of machine learning, is that neither y nor x is measured perfectly. Far from a minor nuance, this can undermine the power of machine learning algorithms to drive change in the health care system--and indeed, can cause them to reproduce and even magnify existing errors in human judgment.

DOI
10.1257/aer.p20171084
Volume
107 (5)
Pages
476-480
Language
en
Export
BibTeX
Sources
crossref openalex