A simple mathematical programming model for countries' credit ranking problem

Sadegh Niroomand, Nima Mirzaei and Abdollah Hadi‐Vencheh

International Journal of Finance & Economics, 2019, vol. 24, issue 1, 449-460

Abstract: This study proposes a new mathematical model that ranks the countries according to their investments. The proposed model compares countries based on specified factors and gives a score for each country. To set out the factors, after investigating on quite a lot of related studies, several macroeconomic factors are gathered, and the most important ones are selected for further investigation. An important advantage of the proposed model is that it can be solved manually by managers, investors, or researchers without a need for any professional optimization solver software. The key factor in this research is developing a mathematical model that ranks any set of countries rather than rating them. At the end of pair comparison, countries are ranked from higher to lower scores from the economical point of view. In addition, the accuracy of the obtained result is validated by comparing them with Moody's rating system (August 2016) using Jaccard similarity index. The results of the proposed are compared with multiple criteria decision‐making techniques as well.

Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/ijfe.1673

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:ijfiec:v:24:y:2019:i:1:p:449-460

Ordering information: This journal article can be ordered from
http://jws-edcv.wile ... PRINT_ISSN=1076-9307

Access Statistics for this article

International Journal of Finance & Economics is currently edited by Mark P. Taylor, Keith Cuthbertson and Michael P. Dooley

More articles in International Journal of Finance & Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().