1. The document discusses using heatmaps to visualize patterns in large income tax data from the Netherlands, which contains information on 17 million tax records.
2. Heatmaps allow exploring relationships between two variables, but generating all possible heatmaps from a large dataset risks producing over 100,000 heatmaps. The authors aim to identify patterns that appear across different subsets of the data.
3. Several challenges in generating heatmaps are discussed, such as handling outliers, skewed data distributions, and choosing an appropriate resolution and color scale. Identifying "meta-patterns" that appear consistently in different subpopulations or variable pairs can provide insights into the underlying data structure.
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3. Who are we?
Statistical consultants / Data scientists
working @ R&D department of Statistics Netherlands
Statistics Netherlands (SN):
-Government agency
-Produces all official statistics of The Netherlands
3
5. Income Tax data
–Contains all income tax records for the Netherlands
–Approx 17M records with 550 variables.
–Used to produce income statistics!
Analysis is not trivial
–Income Tax is complex (at least in the Netherlands)
‐stages of progressive tax
‐Complex Tax deductions (mortgage, flex workers)
‐Complex Tax benefits (child care, social benefits)
5
6. Tax data (2)
-550 variables (for each person in NL):
-15 identificators/unique keys
-Dwelling, person id, etc.
-70 categorical
-250 numerical variables from the income tax form
->200 derived variables (useful for analysis)
-E.g. expandable income, income of dwelling/household
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7. Income/tax distributions
Income (re)distribution hot topic since Piketty
So how are income/tax/benefits distributed?
-Look at 1D distributions: histograms
-Look at 2D distributions: heatmaps
-Problem: potentially 0.5 n(n-1) > 100k heatmaps!
-even more when categorical included
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9. Heatmap Patterns
–What defines a pattern in heatmap?
‐Peak/Spike? (mode, 0D point)
‐Stripe (1D):
•Horizontal Line?
•Vertical Line?
•Band?
•Ridge?
‐Blob (2D)
‐Similarity between distributions (2D)
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10. Meta pattern?
Meta patterns constitutes of repeating pattern in:
‐different subpopulations
•E.g. Male/female, Social economic status, Works in branch of Industry
‐different pairs of variables
•Income x age
•Benefits x age
•Etc.
So patterns that are generic over different heatmaps.
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11. Looking for patterns
Subpopulations:
– Generate heatmap per category e.g. Age x Gross Income per social economic status
–Automatic cluster heatmaps on distribution simularity
Pairs of variables:
-Generate heatmaps for all pairs
-Prune: remove heatmaps with low support
1. Use image classification to cluster them
2. Or Cluster on extracted mode/line (wip)
You will still need to look at the result!
11
14. Anscombe’s quartet
Property
Value
Mean of x1, x2, x3, x4
All equal: 9
Variance of x1, x2, x3, x4
All equal: 11
Mean of y1, y2, y3, y4
All equal: 7.50
Variance of y1, y2, y3, y4
All equal: 4.1
Correlation for ds1, ds2, ds3, ds4
All equal 0.816
Linear regression for ds1, ds2, ds3, ds4
All equal: y = 3.00 + 0.500x
Looks the same, right?
18. Visualization helps to …
–Test your (hidden model) assumptions!
– To find structure in data, e.g.
“How is my data distributed?”
–Visually explore patterns:
‐Are there clusters?
‐Are there outliers?
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20. 20
1. Take two numerical variables x and y
2. Determine range 푟푥=[min푥,max(푥)]
3. Chop 푟푥 in 푛푥 equal pieces
4. Repeat for y
5. We now have 푛푥.푛푦 bins
6. Count # records in each bin
7. Assign colors to counts
8. Plot matrix
9. Enjoy!
21. Easy as pie?
Best practices and problems with heatmaps:
-Resolution
-Rescaling
-Zooming
-Outliers
-Color scales
21
23. 23
1. Take two numerical variables x and y
2. Determine range 퐫퐱=[퐦퐢퐧퐱,퐦퐚퐱(퐱)]
3. Chop 푟푥 in 푛푥 equal pieces
4. Repeat for y
5. We now have 푛푥.푛푦 bins
6. Count # records in each bin
7. Assign colors to counts
8. Plot matrix
9. Enjoy!
26. Range: outliers…
Does your data contain outliers?
-If so: most pixels are empty
-Most cases: outliers have low mass and are barely visible
Truncate range: in x or y direction: e.g. 99% quantile
-Interactively: allow for zoom and pan.
26
27. Range: data skewed?
27
–Many variables are not normal distributed:
‐Power law: 풙훼
‐Exponential: 푒푎풙+푏
So rescale x or y or both
28. 28
1. Take two numerical variables x and y
2. Determine range rx=[minx,max(x)]
3. Chop 풓풙 in 풏풙 equal pieces
4. Repeat for y
5. We now have 푛푥.푛푦 bins
6. Count # records in each bin
7. Assign colors to counts
8. Plot matrix
9. Enjoy!
36. Chop: Too small / Too big
If #bins too small:
- patterns are hidden
If #bins too large:
- heatmap is noisy (signal vs noise)
Optimal nr bins depends on data.
(kernel based approx), but always play with bin size / resolution!
36
38. 38
1. Take two numerical variables x and y
2. Determine range rx=[minx,max(x)]
3. Chop 푟푥 in 푛푥 equal pieces
4. Repeat for y
5. We now have 푛푥.푛푦 bins
6. Count # records in each bin
7. Assign colors to counts
8. Plot matrix
9. Enjoy!
42. 42
1. Take two numerical variables x and y
2. Determine range rx=[minx,max(x)]
3. Chop 푟푥 in 푛푥 equal pieces
4. Repeat for y
5. We now have 푛푥.푛푦 bins
6. Count # records in each bin
7. Assign colors to counts
8. Plot matrix
9. Enjoy!
44. Colors: scales
–Color ‘intensity’ implies value
–Percieved response depends on ‘color’ and ‘color lightness’ (compare #00ff00 with #0000ff)
–Different models for color response:
‐RGB (models computer monitor)
‐HSV
‐HCL
‐CIELAB (models human eye)
–Gradient generator: http://davidjohnstone.net/pages/lch-lab-colour-gradient-picker
44
45. Colors
–Color has two functions in heatmap:
‐Show ‘counts’ in your data
‐Show ‘patterns’
At least, use a perceptually uniform gradient
-Libs: chroma.js, colorbrewer (R)
…but patterns need distinct colors
45
46. Color scales
–Range of color scale depends on distribution of data.
–Often have multiple populations/distributions in data
–Severe spikes/stripes drown the smaller distributions:
‐We suggest log scale
‐Sometimes log scale is not enough
–In practice, linear scale with low maximum cut-off works well
–Effect is best understood in 3D (!).
46
54. Meta pattern
Meta patterns constitutes of repeating pattern in:
‐different subpopulations
‐different pairs of variables
So patterns that are generic over different heatmaps.
54
58. Patterns
–Stripes are real, not outliers:
–Corresponds with benefits, tax breaks
–Needs paradigm shift: data is not normally distributed (but we knew that).
58
59. Meta pattern
Meta patterns constitutes of repeating pattern in:
‐different subpopulations
‐different pairs of variables
So patterns that are generic over different heatmaps.
59
66. Summary
Heatmaps:
–ideal tool for analyzing big datasets
–Be aware of perceptual and data biases!
66
67. Questions?
Thank you for your attention!
More info?
ah.priem@cbs.nl / @_alex_priem
e.dejonge@cbs.nl / @edwindjonge
Heatmapping code available at
https://github.com/alexpriem/heatmapr
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