Designing an Interrupted Time Series Analysis to Evaluate Regulatory Impact on Fintech Innovations

Thank you for this intriguing question. Understanding the causal impact of new financial regulations on the rate of fintech innovations is indeed crucial for guiding both policy-making and strategic business decisions in the fintech sector. To tackle this, an interrupted time series analysis (ITSA) offers a powerful methodological framework, allowing us to measure the immediate and long-term effects of regulatory interventions over time. To begin with, the first step in designing an ITSA is to clearly define our outcome variable, which in this context is the 'rate of fintech innovations.' This can be operationalized through several proxies, such as the number of fintech patents filed, the volume of venture capital investments in fintech startups, or the number of new fintech products/services launched. Each of these metrics offers a different lens through which to view innovation, and the choice of metric should be informed by the availability and reliability of data...