Bertrand, Candelon; Elena-Ivona, Dumitrescu; … - Graduate School of Business and Economics (GSBE), … - 2010
This paper introduces a new generation of Early Warning Systems (EWS) which takes into account dynamics within a system composed by binary variables. We elaborate on Kauppi and Saikonnen (2008), which allows to consider several dynamic specifications and to use an exact maximum likelihood...