Regulatory Stress Tests and Bank Responses: Heterogeneous Treatment Effect in Dynamic Settings

Abstract

The article is part of a project that has received funding from the European Union's Horizon 2020 Research and Innovation Staff Exchange programme under the Marie Sklodowska-Curie grant agreement No. 681228. We also acknowledge support from the Czech Science Foundation (grant 18-05244S).

The views expressed in the paper are those of the authors and not necessarily those of our institutions.

Keywords

• Regulatory stress test
• capital regulation
• heterogeneous treatment effect
• event study
• instrumental variable