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Uniform Inference and Certified Capacity at a Reflexive Stability Boundary

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  • Alejandro Rodriguez Dominguez

Abstract

This paper develops uniform inference and certified capacity decisions for an estimated financial stability boundary. Conditional risk, temporary cross-impact, and effective risk-bearing capacity are jointly estimated from dependent observations. Conventional pointwise inference is reliable at a separated simple spectral root but can fail near semisimple or defective collisions. Projecting a valid joint confidence region for the underlying inputs avoids this local approximation and yields a three-way regime decision with abstention and a one-sided capacity bound. A verified two-dimensional implementation keeps numerical error from creating a resolved sign. Structural simulations recover the predicted tradeoff between coverage and resolution, while observed-risk stresses distinguish statistical abstention from an insufficient computational budget. The financial conclusions remain conditional on the identification of cross-impact, the normalization of capacity, and stability of the inputs over the action horizon.

Suggested Citation

  • Alejandro Rodriguez Dominguez, 2026. "Uniform Inference and Certified Capacity at a Reflexive Stability Boundary," Papers 2609.02535, arXiv.org.
  • Handle: RePEc:arx:papers:2609.02535
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    References listed on IDEAS

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    3. Tim Gebbie, 2026. "Reflexivity from Hierarchical Causality," Papers 2608.22497, arXiv.org, revised Aug 2026.
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