Given a wide amount of possible ratios available for constructing a LOGIT model for forecasting bankruptcy, this paper provides a computational search methodology, only guided by data, for selecting the financial ratios employed in the model. This procedure is based on genetic algorithms which...

Using a statistical methodology guided by a genetic algorithm, we select the best econometric model for explaining the severity of the 2008 crisis, with the main determinant being the percentage of bank claims on private sector over deposits in the year 2006.