Review of Methodologies
The review of the previous chapter shows that country risk analysis is often based on the development of models to discriminate between high-risk countries (e.g., rescheduling) and low-risk ones. This chapter is focused on the methods that can be used to develop such models. Special emphasis is given to non-parametric techniques from the field of MCDA. The considered methods include the UTADIS method and the MHDIS method (Multi-group Hierarchical DIScrimination). Both methods lead to the development of additive models that can be used to classify a set of alternatives (e.g., countries) into q predefined ordinal groups:
KeywordsUtility Function Linear Probability Model Global Utility Utility Threshold Model Development Process
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