In this study, we test empirically whether the slope of the yield curve—yield spread—is a good predictor of recessions. Although the convention in the literature is to use time series, we adopt an unbalanced panel data framework for thirty-two countries in the Organization for Economic...

This study attempts to provide one of the first comprehensive analyses on the misratings in sovereign credit ratings. The analyses are performed using partial frontier methods which should be considered innovative in this literature. By combining a robust variant of the Free Disposal Hull (FDH)...