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No. 3 / 2026 — Autumn

Peer-reviewed articles in economics, finance, public policy, and sustainable development.

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Theoretical and Applied Economics
No. 3 / 2026 (648), Autumn

Predicting customer churn using Machine Learning: models and core approaches

Mohammad Sadegh SALEM
Bucharest University of Economic Studies, Romania

Abstract. Customer retention is fundamental to the growth of customer-centric businesses, especially in highly competitive subscription-based markets where customers can easily switch providers. High customer churn—the tendency of customers to stop engaging with a brand—can lead to significant material losses, reputational damage, and increased customer acquisition costs. This article reviews key strategies for proactive churn management using Machine Learning (ML) models. The findings indicate that integrating behavioral features with segmented ML models significantly enhances predictive accuracy compared to baseline models. The study discusses the essential steps in the ML workflow for churn prediction, including data collection, feature engineering, and customer segmentation. By identifying the research gap in real-time intervention strategies, this paper provides a framework for aligning ML outputs with marketing analytics.

Keywords: machine learning, economic sciences, cloud computing, customer churn, reinforcement learning.

Contents

1

Comparing portfolios built from intrinsic-value-based stock picks versus market-cap-weighted indices

Jack James VADUVA · Dumitru Alexandru BODISLAV

2

The impact of shifting elasticity of substitution on international firm location: global macroeconomic implications

Wataru JOHDO

3

Social security contributions and growth constraints in Greece: breaking the fiscal rigidity trap

Panagiotis ASIMAKOPOULOS

4

Predicting customer churn using Machine Learning: models and core approaches

Mohammad Sadegh SALEM

5

Have we truly transitioned from industrial to service-based economies? An analysis of the economic sectoral distribution

Nora Luz QUIROZ SANTIAGO

6

Monetary-fiscal policy regimes and economic growth in Algeria: a Markov-switching analysis (1990Q2–2025Q4)

Moussa AYACHI · Abdeldjalil CHELLIG

7

Does foreign aid reach the poorest? A multidimensional poverty analysis for Pakistan

Noel ALTER · Arslan KHALID

8

Mathematical modeling of nearshoring and reshoring in the reconfiguration of trade flows

Rares NITU

9

Analyzing the impact of agricultural growth on inclusive growth in Côte d'Ivoire: key challenges and opportunities

Konan Jules KOUADIO · Koffi Célestin N'GORAN · Wei CHANG

10

Credibility erosion and exchange rate pass-through in Türkiye

Umit BULUT · Okan DADALI · Azra Asel BAYRAK

11

The aggregate banking-sector footprint of financial education mandates: cohort exposure, community bank margins, and an arithmetic of detection

Dan-Mihai DIMA

12

The relationship between exchange rates, trade and economic growth in the Philippine context

Jason C. PATALINGHUG

13

Social sector expenditure, economic growth, and multidimensional poverty in India: evidence from panel data analysis

Balaram ROULA · Dr. N. KUBENDRAN

14

Capitalization of Romanian companies and macroeconomic variables: friends or foes?

Bogdan-Octavian COZMÂNCĂ · Leonard-Dan UZUM

15

The role of investment and trade in promoting economic growth in Ghana

Adel Shakeeb MOHSEN

16

Beyond generational decay: a psychosocial account of Generation Z’s changing relationship with achievement, education and work

Raluca Iuliana GEORGESCU · Dumitru Alexandru BODISLAV

17

Financial inclusion and sustainable development in Algeria: an empirical analysis using the ARDL Model (2004-2022)

Djamila BEKHTI · Mehdi BOUCHETARA · Mohammed Redha BOUCHIKHI · Leila Ismahane BAKBAK

18

The Impact of Fiscal Policy on Inflation in Romania

Andreea CRACIUN

19

Comparing regional and global spillovers to the GCC equity markets

Moosa YOUSUF

20

Tax pressure and governance in a spatially interdependent world: international evidence and Morocco’s positioning

Mounir ATLASSI · Mohamed KARIM · Ilham DKHISSI

21

Management and performance of territorial police structures: a conceptual framework based on indicators

Gabriel Nicolae UȚĂ