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US Economic Outlook 2025
With the 2024 election in the rear view mirror, we have a better picture of what policy for the next few years is going to look like. As such, we have a better idea on what to expect from the US economy over the next few years. That has largely colored my analysis this year.…
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What Regulators Expect From Fintech Model Risk Management
The Regulatory Landscape Model risk management is not new. In 2011 the Federal Reserve and the Office of the Comptroller of the Currency issued guidance known as SR 11-7. This guidance set out a clear framework for how banks should manage model risk. It called for governance structures, validation processes, and strong documentation. Though aimed…
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3 Costly Mistakes Fintechs Make in Model Validation (and How to Avoid Them)
For fintechs and banks alike, models are at the heart of decision-making — from credit scoring and fraud detection to pricing, capital allocation, and even AI-powered chatbots. Regulators know this, which is why model risk management has become a major area of scrutiny under supervisory guidance like SR 11-7. Yet despite the stakes, many firms…
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Why Every Fintech Needs Independent Model Validation
In an age of spectacular power of AI and machine learning models that seem to grow in capability year after year, fintechs are seeking ways to increase efficiency with these new tools. However, these tools are designed to literally have a mind of their own. So they can easily misbehave. Take the example of Hello…
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How Well Does Real Estate Hedge Inflation?
Last week, I built a multifactor model and ran some optimization to find good candidate zip codes to invest in. This week, I’m looking at the same data again, but this time, we are going to figure out, on a national-level, whether or not our real estate investments are a good hedge against inflation. You…
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Real Estate Portfolio Construction
Real estate investing is an interesting game to play. There are many ways to be a real estate investor, you may be interested solely in Cash Flows, or you may be looking for flips, or you might just be playing a game of appreciation. So, I want to talk a little bit about how to…
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Donald’s Terrible Tariff Policy
One of the curses about being an economist, is that everyone asks you about your opinion on economic news. I’ve had so many people ask me about tariffs over the last week. I guess that there is no getting out of this, I need to have an opinion on these proposed tariffs, and what they…
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Dynamically Updating Prices with Online Learning: A Practical Guide
n today’s rapidly changing markets, the ability to dynamically adjust prices in real-time can provide a significant competitive edge. By leveraging online learning techniques, businesses can continuously refine their pricing strategies based on incoming data. In this post, we’ll walk through a practical implementation using Recursive Least Squares (RLS) to dynamically update prices. This example…
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Optimizing Prices Using Elasticity
In this blog post, we estimate the price elasticity of demand using a linear demand function and visualize the results in Python. We set up the environment, load and explore a dataset, estimate price elasticity with ordinary least squares, and derive the revenue-maximizing price. Finally, we visualize the revenue price curve.
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Understanding Price Elasticity
Understanding price elasticity is key to effective pricing strategies. Barnes Analytics specializes in analyzing price elasticity using advanced econometric models. They help businesses optimize pricing by offering data-driven insights, tailored strategies, competitive analysis, dynamic pricing, and continuous optimization, enhancing competitiveness and driving growth.
