Related papers: Financial knowledge and borrower discouragement

We use machine learning techniques to investigate whether it is possible to replicate the behavior of bank managers who assess the risk of commercial loans made by a large commercial US bank. Even though a typical bank already relies on an…

We test the hypothesis that interconnections across financial institutions can be explained by a diversification motive. This idea stems from the empirical evidence of the existence of long-term exposures that cannot be explained by a…

Systems aiming to aid consumers in their decision-making (e.g., by implementing persuasive techniques) are more likely to be effective when consumers trust them. However, recent research has demonstrated that the machine learning algorithms…

This paper explores various socioeconomic factors that contribute to individual financial success using machine learning algorithms and approaches. Financial success, a critical aspect of all individual's well-being, is a complex concept…

We analyze and quantify, in a financial market with parameter uncertainty and for a Constant Relative Risk Aversion investor, the utility effects of two different boundedly rational (i.e., sub-optimal) investment strategies (namely, myopic…

Previous studies show that information security breaches and privacy violations are important issues for organisations and people. It is acknowledged that decreasing the risk in this domain requires consideration of the technological…

This paper provides a comprehensive examination of the evolution of credit cards in the United States, tracing their historical development, causes, consequences, and impact on both individuals and the economy. It delves into the…

For more than a half-century, credit risk management has used credit scoring models in each of its well-defined stages to manage credit risk. Application scoring is used to decide whether to grant a credit or not, while behavioral scoring…

The impact of cognitive biases on architectural decision-making has been proven by previous research. In this work, we endeavour to create a debiasing treatment that would minimise the impact of cognitive biases on architectural…

Despite extensive research on scientific disruption, two questions remain: why disruption has declined amid growing knowledge, and why disruptive work receives fewer and delayed citations. One way to address these questions is to identify…

Extensive research shows that consumers are generally averse to price discrimination. However, instruments of differential pricing can benefit consumer surplus and alleviate inequity through targeted price discounts. This paper examines how…

Background: Cyber offences, such as hacking, malware creation and distribution, and online fraud, present a substantial threat to organizations attempting to safeguard their data and information. By understanding the evolving…

We find it is common for consumers who are not in financial distress to make credit card payments at or close to the minimum. This pattern is difficult to reconcile with economic factors but can be explained by minimum payment information…

Financial networks help firms manage risk but also enable financial shocks to spread. Despite their importance, existing models of financial networks have several limitations. Prior works often consider a static network with a simple…

The financial services industry has unique explainability and fairness challenges arising from compliance and ethical considerations in credit decisioning. These challenges complicate the use of model machine learning and artificial…

We investigate investors voluntary disclosure decisions under uncertainty about their information endowment (Dye 1985). In our model, an investor may receive initial evidence about a target firm. Conditional on learning the initial…

Online lending, a phenomenon which is becoming mainstream due to the migration of consumer finance to the Internet and the adoption of AI based lending models, is an example of learning by doing. This paper studies optimal policies for a…

Recently, financial institutes have been dealing with an increase in financial crimes. In this context, financial services firms started to improve their vigilance and use new technologies and approaches to identify and predict financial…

I sketch a program for a microeconomic theory of the main component of the business cycle as a recurring disequilibrium, driven by incompleteness of the financial market and by information asymmetries between borrowers and lenders. This…

Economists modeled self-control problems in decisions of people with the time-inconsistence preferences model. They argued that the source of self-control problems could be uncertainty and temptation. This paper uses an experimental test…