area sovereign debt crises. We find that macro and default-specific world factors are a primary source of default …

literature. In contrast, studies on relative location tend to be weakly linked to theory, but apply relatively sophisticated … appropriateness of such models, and identify areas of potential concern. The rather weak linkage between theory and operational models …

components for a large data set comprising the U.S., the EU-27 area, and the respective rest of the world. Credit risk conditions …