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Incorporating heterogeneity and macroeconomic variables into multi-condition delinquency models for credit cards
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Both of those of these factors are very important to using the output of stress tests in helpful means and to offering outputs that reflect the risk of Each individual bank’s assets. I’ll have far more to mention on these details later on in my remarks.
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Now that I’ve outlined, certainly within an incomplete way, quite a few areas wherein economists can usefully improve the intellectual framework of stress testing, the query arises, Which economists needs to be used in All those pursuits?