Faculty Directory
Heng Chen

Adjunct Professor


2145 Sheridan Road
Evanston, IL 60208-3109

Email Heng Chen


Master of Science in Analytics Program


PhD, Econometrics and Environmental Economics, the Ohio State University, Columbus, Ohio, 1993.

MS, Environmental Ecology, University of California at Davis, California, 1988.

MS, Agricultural and Resources Economics, University of California at Davis, California, 1988.

BS, Mathematical Ecology, South China University of Tropical Crops, 1983.

Research Interests

Heng Zhang Chen is a Senior Manager at Discover Financial Services. He leads the predictive modeling analytics for risk management in underwriting, credit line assignment, and pricing for new accounts origination. Heng began his professional career in 1993 at Michigan State University as a Visiting Assistant Professor, and his work was focused on the research of econometric models for environmental and natural resources valuation. Heng joined American Express in 1997, and provided the modeling and analytical supports in marketing acquisitions and credit risk management for credit cards and other financial products. Heng’s analytical interests include the applications of discrete choice econometric models in credit risk management for financial services industry. His analytical experience in risk management for credit cards’ end-to-end lifecycle includes targeting, new accounts underwriting, point of sale credit authorizations, portfolio risk management, and collections. His latest research is focused on how to assess credit worthiness for the declined applications without performance information; which is often referred to as reject inference in the industry. The new methodology has been peer-reviewed and adopted as the best practice for production. He also published in several peer-reviewed journal articles, including the Journal of Econometrics and the American Journal of Agricultural Economics.

Selected Publications

    Chen, Heng Z. and Alan Randall, Semi-nonparametric Estimation of Binary Response Models with An Application to Natural Resource Valuation, Journal of Econometrics, 1997.

    Chen, Heng Z. and Stephen R. Cosslett, “Environmental Quality Preference and Benefit Estimation in Multinomial PROBIT Models: A Simulation Approach,” American Journal of Agricultural Economics, 1998.

    Chen, Heng Z., Frank Lupi, and John P. Hoehn, An Empirical Assessment of Multinomial PROBIT and LOGIT Models of Recreational Demand in Valuing the Recreation and Environment: Revealed Preference Methods in Theory and Practice (C. Kling and J. Herriges, eds.), Edward Elgar, pp. 141-162, 1999.

    Chen, Heng Z., The Estimation of a Complete Demand System: A Simulation Approach to Censored TOBIT Model. Submitted to Journal of Business and Economic Statistics. Revise and Resubmit, 1999.

    Chen, Heng Z., “Nested LOGIT Models for Reject Inference in Acquisition Credit Risk Management: Leveraging the Risk Correlation Between DFS Trade and Non-DFS Trades,” Discover Financial Services, 2013.