in Scotland in 2007. The model includes six latent variables expressing farmers’ nitrate reducing behaviour, nitrate … perception) and socio-economic latent variables (access to information and stocking density). The results indicate that the model …

attainable. JEL Classification: C52, G11, G32 Keywords: Operational Risk, Latent Variables, Correlated Events 1 … of { possibly observable { latent variables which drive the discrete counting process for the observed loss occurrences … vector S = (S1;:::;Sm)0, where Xi are the latent variables and dij the appertaining thresholds of the latent-variable model …

nonlinear Structural Equation Model (SEM) with latent variables for estimation of the Exact Discrete Model (EDM), which links … the CT model parameters to the DT observations. The use of a SEM with latent variables makes it possible to take …

serially correlated errors. We augment the data with latent variables and sample the unobserved heterogeneity component as one …