Martínez, Felipe; Cifuentes, Rodrigo; Madeira, Carlos; … - Banco Central de Chile - 2013
In this paper we study the determinants of financial risk of households. We estimate the probability of default of household using a probit model with two novel variables: (i) a Modified version of the Debt Service Ratio index (MDSR) and (ii) the probability of job layoff of the head of the...