The analysis starts with effortless univariate matchmaking outlining differences in the fresh new designs and you may terms of the brand new money for several people teams shortly after dealing with to possess credit ratings

Forecast values out of this formula were utilized in order to expect performance residuals having blacks, Hispanics, and Asians. Differences between individuals’ genuine show residuals in addition to their predict efficiency residuals might be interpreted since the unexplained racial otherwise cultural effects. The brand new empirical quote ended up being extended to manage to the census-system estimate of one’s person’s income, brand new cousin income of your own person’s census region, and also the mean credit history of your own person’s census area. All regressions were conducted independently for people regarding the reduced TransRisk Get quintile, on next-lowest quintile, and in the top three quintiles mutual. The latest TransRisk Score additionally the TransRisk Score squared have been and provided when you look at the for every regression. Like with the fresh new analyses of score differences, the latest regressions have been and additionally operate on just men, controls for age, and you will weights into portion of non-Latina whites about census cut off.