JURNAL ECONOMINA
Vol. 5 No. 10 (2026): JURNAL ECONOMINA, Oktober 2026

Tree-Based Random Effects Models for Poverty Analysis in Indonesia

Arie Purwanto (Universitas Mercu Buana Yogyakarta, Indonesia)
Rusmining Rusmining (Universitas Ahmad Dahlan, Indonesia)
Muhamad Irfan Rumasoreng (Universitas Mercu Buana Yogyakarta, Indonesia)
Nanang Khuzaini (Universitas Mercu Buana Yogyakarta, Indonesia)



Article Info

Publish Date
30 Oct 2026

Abstract

Poverty is a multidimensional phenomenon influenced by socioeconomic factors and regional heterogeneity. This study aims to compare the predictive performance of the Linear Mixed Model (LMM), Mixed-Effects Regression Trees (MERT), Random Effects Expectation Maximization Tree (RE-EM Tree), and 3Trees in modeling district- and city-level poverty rates in Indonesia, accounting for clustering by province. The analysis uses data from Statistics Indonesia and evaluates model performance through within-cluster repeated two-fold cross-validation with 50 repetitions, yielding 100 model evaluations. Predictive accuracy is assessed using the Mean Squared Error (MSE) on training data and the Prediction Mean Squared Error (PMSE) on testing data. The results show that 3Trees achieves the lowest average MSE of 7.46 (standard deviation: 1.02) and the lowest average PMSE of 13.97 (standard deviation: 1.70). In comparison, LMM, MERT, and RE-EM Tree produce higher average PMSE values of 14.62, 19.38, and 17.86, respectively. These findings indicate that 3Trees provides the best predictive performance among the four methods under the evaluation procedure used in this study

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Journal Info

Abbrev

economina

Publisher

Subject

Economics, Econometrics & Finance

Description

JURNAL ECONOMINA (JE) is a peer-reviewed journal which publishes original research papers. ECONOMINA has been published since 2022. It is currently published every month a year with e-ISSN: 2963-1181. The Digital Object Identifier (DOI) is assigned to each published article and the journal is ...