A simple mathematical programming model for countries' credit ranking problem

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.

An improved weighted principal component analysis integrated with TOPSIS approach for global financial development ranking problem of Middle East countries

“…In order to compare the obtained rankings of Tables 3 and 4, the Jaccard similarity index ($$$ \mathrm{JSI} $$$) 9 is used. The value of $$$ \mathrm{JSI} $$$ is less than or equal to 1.…”

“…Furthermore, gender, IQ of the people, and export rate also have been introduced as some recent drivers of financial development by Hafer, 6 Zins and Weill, 7 and Mlachila and Ouedraogo 8 . The study of Niroomand et al 9 proposes a simple mathematical programming model for countries' credit ranking problem using some financial development based indicators. In the results of this study, more developed countries obtained better ranking.…”

Interval-Valued Pythagorean Fuzzy Extension of DEMATEL for Prioritizing and Casualty Analysis of Environmental Criteria of Organizational Behaviour in Higher Education Sector

“…The obtained importance weight values and associated ranking in each scenario are represented by Table 8. Here, the obtained rankings can be compared using the Jaccard similarity index (JSI) (see Niroomand et al, 2019). Thus, for any pair of the rankings a JSI value which is between 0 (indicating no similarity) and 1 (indicating full similarity) is obtained.…”