Can causal machine learning reveal individual bid responses of bank customers? - A study on mortgage loan applications in Belgium

Published: 01 Jan 2025, Last Modified: 16 May 2025Decis. Support Syst. 2025EveryoneRevisionsBibTeXCC BY-SA 4.0
Abstract: Highlights•The study highlights the role of causal inference in loan pricing.•We frame bid response modeling within the Neyman–Rubin potential outcomes framework.•We analyze factors leading to observed cofounding in loan pricing data.•We assess the impact of observed confounding on various machine learning methods.•Real-life mortgage loan data from a Belgian bank is used for empirical evaluation.
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