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In credit risk analysis, survival models with fixed and time-varying covariates are widely used to predict a borrower's time-to-event. When the time-varying drivers are endogenous, modelling jointly the evolution of the survival time and…

Risk Management · Quantitative Finance 2025-09-03 Victor Medina-Olivares , Finn Lindgren , Raffaella Calabrese , Jonathan Crook

By integrating survival analysis, machine learning algorithms, and economic interpretation, this research examines the temporal dynamics associated with attaining a 5 percent rise in purchasing power parity-adjusted GDP per capita over a…

General Economics · Economics 2024-04-09 Diego Vallarino

Model-based Deep Reinforcement Learning (RL) assumes the availability of a model of an environment's underlying transition dynamics. This model can be used to predict future effects of an agent's possible actions. When no such model is…

Machine Learning · Computer Science 2021-12-15 Andreas Sedlmeier , Michael Kölle , Robert Müller , Leo Baudrexel , Claudia Linnhoff-Popien

The widespread digitization of patient data via electronic health records (EHRs) has created an unprecedented opportunity to use machine learning algorithms to better predict disease risk at the patient level. Although predictive models…

Accurate real time crime prediction is a fundamental issue for public safety, but remains a challenging problem for the scientific community. Crime occurrences depend on many complex factors. Compared to many predictable events, crime is…

Numerical Analysis · Mathematics 2017-07-12 Bao Wang , Duo Zhang , Duanhao Zhang , P. Jeffery Brantingham , Andrea L. Bertozzi

Recent literature implements machine learning techniques to assess corporate credit rating based on financial statement reports. In this work, we analyze the performance of four neural network architectures (MLP, CNN, CNN2D, LSTM) in…

Risk Management · Quantitative Finance 2020-03-06 Parisa Golbayani , Dan Wang , Ionut Florescu

In bankruptcy prediction, the proportion of events is very low, which is often oversampled to eliminate this bias. In this paper, we study the influence of the event rate on discrimination abilities of bankruptcy prediction models. First…

Machine Learning · Statistics 2018-03-14 Lili Zhang , Jennifer Priestley , Xuelei Ni

Student loans occupy a significant portion of the federal budget, as well as, the largest financial burden in terms of debt for graduates. This paper explores data-driven approaches towards understanding the repayment of such loans. Using…

Applications · Statistics 2018-05-07 Bin Luo , Qi Zhang , Somya D. Mohanty

Climate change is expected to aggravate wildfire activity through the exacerbation of fire weather. Improving our capabilities to anticipate wildfires on a global scale is of uttermost importance for mitigating their negative effects. In…

Predicting crime using machine learning and deep learning techniques has gained considerable attention from researchers in recent years, focusing on identifying patterns and trends in crime occurrences. This review paper examines over 150…

Machine Learning · Computer Science 2023-06-16 Varun Mandalapu , Lavanya Elluri , Piyush Vyas , Nirmalya Roy

We study the dynamic portfolio selection of an investor who uses deep learning methods to forecast stock market excess returns. In a two-asset allocation problem, deep neural networks -- both feedforward and long short-term memory (LSTM)…

General Finance · Quantitative Finance 2026-02-16 Mykola Babiak , Jozef Barunik

In this paper we present a Bayesian competing risk proportional hazards model to describe mortgage defaults and prepayments. We develop Bayesian inference for the model using Markov chain Monte Carlo methods. Implementation of the model is…

Applications · Statistics 2017-06-26 Arnab Bhattacharya , Simon P. Wilson , Refik Soyer

Machine learning algorithms are increasingly employed to price or value homes for sale, properties for rent, rides for hire, and various other goods and services. Machine learning-based prices are typically generated by complex algorithms…

Theoretical Economics · Economics 2023-02-21 Nikhil Malik , Emaad Manzoor

Wildfire evacuation behavior is highly variable and influenced by complex interactions among household resources, preparedness, and situational cues. Using a large-scale MTurk survey of residents in California, Colorado, and Oregon, this…

Machine Learning · Computer Science 2026-03-04 Sazzad Bin Bashar Polock , Anandi Dutta , Subasish Das

Credit risk prediction is an effective way of evaluating whether a potential borrower will repay a loan, particularly in peer-to-peer lending where class imbalance problems are prevalent. However, few credit risk prediction models for…

Machine Learning · Computer Science 2018-05-03 Anahita Namvar , Mohammad Siami , Fethi Rabhi , Mohsen Naderpour

Logistic Regression and Support Vector Machine algorithms, together with Linear and Non-Linear Deep Neural Networks, are applied to lending data in order to replicate lender acceptance of loans and predict the likelihood of default of…

Risk Management · Quantitative Finance 2019-07-04 Jeremy D. Turiel , Tomaso Aste

Deep neural networks are powerful tools to detect hidden patterns in data and leverage them to make predictions, but they are not designed to understand uncertainty and estimate reliable probabilities. In particular, they tend to be…

Machine Learning · Statistics 2022-11-10 Bat-Sheva Einbinder , Yaniv Romano , Matteo Sesia , Yanfei Zhou

Neural activity forecasting is central to understanding neural systems and enabling closed-loop control. While deep learning has recently advanced the state-of-the-art in the time series forecasting literature, its application to neural…

Reliable earthquake forecasting methods have long been sought after, and so the rise of modern data science techniques raises a new question: does deep learning have the potential to learn this pattern? In this study, we leverage the large…

Geophysics · Physics 2023-07-06 Jonas Koehler , Wei Li , Johannes Faber , Georg Ruempker , Nishtha Srivastava

Popular approaches for quantifying predictive uncertainty in deep neural networks often involve distributions over weights or multiple models, for instance via Markov Chain sampling, ensembling, or Monte Carlo dropout. These techniques…

Machine Learning · Computer Science 2023-03-08 Dennis Ulmer , Christian Hardmeier , Jes Frellsen