Emerging Markets and the Global Economy

Chapter 15

Early Warning System for Financial Crisis: Statistical Classification Approach

Young Min Kim^a, Kyong Joo Oh^a and Tae Yoon Kim^b,    ^aDepartment of Information and Industrial Engineering, Yonsei University, Seoul, South Korea,    ^bDepartment of Statistics, Keimyung University, Daegu, South Korea,    E-mail: [e-mail], [e-mail], [e-mail]

Abstract

This chapter discusses a statistical classification approach for developing a financial crisis early warning system (EWS). The main aim of this chapter is to introduce a lag- forecasting classifier constructed in accordance with the sequential works by Son et al. (2009) ...