01795nam a22002777u 4500 pwiiw3194 OSt 20260518120109.0 121123t2012 au ||||| |||| 00| ||eng d OSt eng Herceg, Ivana A New Cluster-Based Financial Vulnerability Indicator: The Analytical Concept and its Application for Stress Testing in a Post-Socialist Economy Wien : Wiener Institut für Internationale Wirtschaftsvergleiche (wiiw), 2012. wiiw Balkan Observatory Working Papers 100 This paper proposes a new approach to household financial vulnerability analysis by employing cluster analysis techniques in the identification of potentially vulnerable households. The cluster-based vulnerability indicator is combined with a binary dependant variable model and used in stress testing. The proposed methodology is applied to householdlevel data for a post-socialist economy – that of Croatia – with the specific aim of testing the extent to which the prolonged economic downturn following the Great Recession of 2008-2009 might hurt indebted households. The paper compares the results based on the new approach with those based on traditional stress testing methods. Interest rate shocks had a stronger impact on household vulnerability in the traditional approach, whereas decreases in employment are found to be more disruptive in the cluster-based approach. household financial vulnerability cluster analysis stress testing Croatia Croatia Nestić, Danijel 100 WIIW0000140 wiiw Balkan Observatory Working Papers https://wiiw.ac.at/p-3194.html P z 8788 8788 0 0 0 0 BIB BIB 1 2012-11-23 pwiiw3194 0 100 1000010003194 2012-11-23 00:00:00 2019-02-05 P