This paper integrates a set of independent social capital indicators into one index by using structural equation modeling (SEM) based on partial least squares estimation (PLS). The social capital index consists of two dimensions: participation and trust. In each of the two dimensions, three...

This paper aims to analyze the relationship between institutional quality, corruption level, and economic development. The methodology makes use of cross-national data developed by the World Bank on perceived levels of corruption, institutional framework quality and economic development to test...

The paper presents the basic Credit Risk+ model, and proposes some modifications. This model could be useful in the stress-testing financial sector assessments process as a benchmark for credit risk evaluations. First, we present the setting and basic definitions common to all the model...

This paper proposes a methodology to jointly generate optimal forecasts from an autoregression of order p for 1 to h steps ahead. The relevant model is a Partial Least Squares Autoregression, which is positioned in between a single AR(p) model for all forecast horizons and different AR models...

The paper at hand presents a customer satisfaction model for the private banking industry. We empirically assess the postulated model with the help of partial least squares (PLS) and use formative measurement models for the predictors of customer satisfaction and customer loyalty. The results of...