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The credit-to-GDP gap and countercyclical capital buffers: questions and answers
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19

August 2024

2024/2025

A+
Evaluating EWIs with the AUC The AUC (the area under the receiver operating characteristics curve, or ROC curve) is a statistical tool used in assessing the performance of signals that forecast binary events (ie events that either occur or do not). The term ROC reflects the origins of the tool in the analysis of radar signals during World War II, although it has a long tradition in other sciences (eg Swets and Picket (1982)). Its applications to economics are more recent (eg Cohen et a...
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