In this research we propose a new method for retail credit risk modeling. In order to capture possible non-linear relationships between credit risk and explanatory variables, we use a learning vector quantization (LVQ) neural network. The model was estimated on a dataset from Slovenian banking sector. The proposed model outperformed the benchmarking (LOGIT) models, which represent the standard approach in banks. The results also demonstrate that the LVQ model is better able to handle the properties of categorical variables.
F.02 Acquisition of new scientific knowledge
COBISS.SI-ID: 10767900Previous research has highlighted the importance of strong heterogeneity for the successful evolution of cooperation in games governed by pairwise interactions. Here we determine to what extent this is true for games governed by group interactions. We therefore study the evolution of cooperation in the public goods game on the square lattice, the triangular lattice, and the random regular graph, whereby the payoffs are distributed either uniformly or exponentially amongst the players by assigning to them individual scaling factors that determine the share of the public good they will receive. We find that uniformly distributed public goods are more successful in maintaining high levels of cooperation than exponentially distributed public goods. This is not in agreement with previous results on games governed by pairwise interactions, indicating that group interactions may be less susceptible to the promotion of cooperation by means of strong heterogeneity than originally assumed, and that the role of strongly heterogeneous states should be reexamined for other types of games.
B.05 Guest lecturer at an institute/university
COBISS.SI-ID: 18843144The financial and economic crisis of 2008 has again tempted the European Union's (EU) most developed economies to exercise a policy of economic nationalism. These processes have been, however, more or less financially based and less profound than the revival of economic nationalism in 2005. Then it was triggered by a strong rise of inward cross- border mergers and acquisitions (C-B M&A) in these countries. In this article the authors test the rationale of protective policies of the European governments when nationally important industries are concerned using the results of their 2009 empirical study on C-B M&A. The study proves that C-B M&A cause more benefits than threats. On the other hand, however, at the same time the real economic policy in the EU countries offsets the fear that liberalization of inward C-B M&A would endanger national economic goals. The paper does not support such a view. By putting the results of the study into the context of the Inward Foreign Direct Investment Potential Index by UNCTAD and the Index of Investment Freedom by the Heritage Foundation, the paper supports the view that the opening of strategically important sectors to international capital movements is compatible with the goals of national policy support for these sectors.
B.03 Paper at an international scientific conference
COBISS.SI-ID: 10556188