The effects of choice-based sampling and small-sample bias on past fair lending exams
By: by Jason Dietrich.
Contributors: United States. Office of the Comptroller of the Currency.
Series: Economic and policy analysis working paper ;; 2001-2; Economic and policy analysis working paper (2000 : Online) ;; 2001-2.
Publisher: Office of the Comptroller of the Currency
Published: 2001
Place of publication: Washington, DC
Language: eng
Format: Electronic resource
Subjects: Discrimination in banking -- United States.; National banks (United States); Risk management.
Description: "The Office of the Comptroller of the Currency uses choice-based sampling and limited sample sizes for statistically modeled fair lending exams. Both choice-based sampling and small sample sizes introduce bias into the maximum likelihood logit estimator, the standard estimator used by the OCC. This study applies results from Amemiya (1980) and Scott and Wild (1991) to estimate these biases for 16 recent exams. The results show that of 29 tests of the null hypothesis of no racial effect conducted during the 16 exams, the outcome of two would change if small sample bias were taken into account, and the outcome of six would change if choice-based sampling bias were taken into account. Overall, the bias from choice-based sampling is generally larger. Although this study does not attempt to establish whether better sampling strategies would have changed examination conclusions based on any of the 29 hypothesis tests, the findings show that such strategies would have prescribed more thorough manual followup reviews for at least five of the 29 tests"--Office of the Comptroller of the Currency web site.
Notes: Includes bibliographical references.
Title from PDF file as viewed on 1/7/2005.
Also available in print.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.