Different Measures of Country Risk: An Application to European Countries

Country Risk (CR) is a relevant instrument to analyze and understand economic performances relationships between different countries in the actual political international globalized context. The present work develops indexes for European Union by applying three methods field of formative approach. Our aim show how robust CR measurements can be developed operational easily computable methods. We identify set significant variables included reference literature. Then, we propose simple aggregative processes order obtain measures, at precise time over time. As result, if compare outcomes, similar rankings emerge. In other words, there are no differences results also due applications. findings demonstrate that choice aggregation method depends on willingness researcher baste analysis with or without weighing and, therefore, semantic content assigned entire research structure. Each should follow disinterested theoretical–methodological consistency, knowing particular indexing process does not significantly alter nature compared what would result method.