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AN-012: Urgency classifier validation

Economic intuition

Every purchase order is labeled as judicial-urgent, administrative-urgent, or ordinary by a classifier. Before trusting those labels, we check them against a hand-verified ground-truth set. The classifier agrees with the ground truth on 98.6% of cases, and its per-class accuracy is high for both urgent types. Crucially, the kind of mistakes it still makes would blur the regimes together, pulling estimated contrasts toward zero rather than exaggerating them.

Question

The empirical analysis relies on labeling each purchase order by its urgency regime. How accurate is that classifier when checked against a ground-truth set, and would any residual misclassification bias the regime contrasts upward or downward?

Design

  • Sample: 764,362 classified purchase orders, validated against 179,148 ground-truth purchase orders. The classifier operates at the purchase-order and tender-notice level. The empirical analysis is at the purchase-offer-item (POI) level, and price regressions use accepted winning bids. The 764,362 classified orders exceed the 479,330 POI analysis file because classification is upstream of item-level linkage.
  • Specification: the urgency classifier is evaluated for exact agreement and per-class F1 against the ground-truth labels.

Results

Metric Value
Classified purchase orders 764,362
Ground-truth purchase orders 179,148
Exact agreement 98.6%
Urgent-class F1 (judicial) 0.93
Urgent-class F1 (administrative) 0.96
Macro-F1 0.94

Output: v10-causal-mechanism/output/tables/tab_classifier_validation_v9.tex.

Interpretation

Confidence: green for measurement validity. The urgency classifier reaches 98.6% exact agreement against 179,148 ground-truth purchase orders, with urgent-class F1 of 0.93 for the judicial class and 0.96 for the administrative class, and a macro-F1 of 0.94. The classifier operates upstream of the POI analysis file, and remaining misclassification would blur regimes together, attenuating rather than inflating regime contrasts. This does not make the substantive estimates causal, but the regime-label measurement check itself is strong.

Follow-ups

  • Report the confusion matrix entries that drive the residual misclassification, to confirm the attenuation direction class by class.
  • Re-validate on an expanded ground-truth set drawn from later vintages to check that classifier accuracy is stable over the panel.