The Relative Importance of Political and Economic Variables in Creditworthiness Ratings
IMF Working Papers, April 1, 1998
Source details
- Canonical URL
- The Relative Importance of Political and Economic Variables in Creditworthiness Ratings
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Bibliographic details
- Published: April 1, 1998
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451846522.001
Summary findings
- The study examines the relative importance of political and economic variables in the determination of a country’s standing in credit ratings provided by commercial rating agencies.
- Creditworthiness appears to be determined primarily by economic variables.
- Including political events can improve the explanatory power of the regressions.
- The exclusion of political variables does not bias the parameter estimates for the effects of economic variables.
Subject areas and keywords
- Subject: Balance of payments, Credit ratings, Current account, Export performance, External debt, Financial institutions, International trade, Money, Treasury bills and bonds
- Keywords: country, country creditworthiness rating, Credit ratings, creditworthiness, Current account, dependant variable, EIU ratings regression, Export performance, Global, government, omitted variables bias, rating, rating agency, Treasury bills and bonds, WP
Content in this bundle
- The Relative Importance of Ppolitical and Economic Variables in Creditworthiness Ratings - WP/98/46