Construction of a Simplified Index of Country Risk: The Case of Europe

  • Juan Carlos Ayala Calvo
  • Txomin Iturralde Jainaga
  • Arturo Rodríguez Castellanos
Part of the Applied Optimization book series (APOP, volume 19)


The aim of this study is to find a simplified index, based only on observational variables, which would provide an order of the European countries similar to that presented by the index of Euromoney magazine. To this end, we apply some statistical techniques, such as principal components analysis, cluster analysis and regression analysis, to a sample made up by the values of the variables of the Euromoney’s index for 41 European countries, during the period September 1992 — September 1996.


Country risk Indexes of country risk Principal components analysis Cluster analysis 


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Copyright information

© Springer Science+Business Media Dordrecht 1998

Authors and Affiliations

  • Juan Carlos Ayala Calvo
    • 1
  • Txomin Iturralde Jainaga
    • 2
  • Arturo Rodríguez Castellanos
    • 2
  1. 1.University of La RiojaSpain
  2. 2.University of The Basque CountrySpain

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