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This paper is concerned with fuzzy hypothesis testing in the framework of the randomized and non-randomized hypergeometric test for a proportion. Moreover, we differentiate between a test of significance and an alternative test to control the type I error or both error types simultaneously. In contrast to classical (non-)randomized hypothesis testing, fuzzy hypothesis testing provides an additional gradual consideration of the indifference zone in compliance with expert opinion or user priorities. In particular, various types of hypotheses with user-specified membership functions can be formulated. Additionally, the proposed test methods are compared via a comprehensive case study, which demonstrates the high flexibility of fuzzy hypothesis testing in practical applications. [ABSTRACT FROM AUTHOR]

The primary mission of the blockchain is to establish a creditworthy ecosystem among independent participants in a non-trustable distributed environment. A blockchain system is secure and autonomous based on its chained blocks, peer–peer nodes, consensus-based ledger mechanism, anonymous accounts, self-regulated data ownership, and programmable smart contracts. There are continuous arguments at which features from Bitcoin are fundamental for blockchains and what are changeable. Furthermore, a devoted credit system is required to make blockchain systems creditworthy although blockchains provide a creditworthy infrastructure for data-level storage and operations. The necessity, feasibility, efficiency, and expected benefits are crucial factors to evaluate a blockchain venture. Several popular and promising blockchain techniques are underdeveloped; among them are those for blockchain creditworthiness, performance, efficiency, security, privacy, supervision, and online-to-offline integration. A new prosperity of the blockchain is on its way since two symbolic projects, the Libra by Facebook and the DCEP by Central Bank of China, were announced. [ABSTRACT FROM AUTHOR]

Creditworthiness assessment is a valuable tool in avoiding irresponsible lending. Both the Consumer Credit Directive and the Mortgage Credit Directive provide for the requirement of a creditworthiness assessment before the conclusion of the credit agreement. However, neither the Consumer Credit Directive nor the Mortgage Credit Directive adequately regulate the content of the information to be collected by creditors in order to assess creditworthiness, with the result that quite different approaches are followed in different Member States. At the same time, while the Mortgage Credit Directive provides clear direction as to the granting or not of the loan depending on the outcome of the assessment, the corresponding provision of the Consumer Credit Directive leaves much room for interpretation. [ABSTRACT FROM AUTHOR]

A dedicated creditworthiness service is required for e-commerce trades to be conducted as with credit in traditional trades. Compared with traditional trades, e-commerce trading provides users with rich information and comments on the products and vendors, albeit sometimes bedevilled with false and fallacious information. Based on this observation, the dedicated e-commerce creditworthiness model is supposed to incorporate online comments while overcoming the effects of such fallacious information. The objective is to provide e-commerce participants with authentic, reliable descriptions of the vendors and their products. The authors have proposed a dedicated creditworthiness model and cloud service for e-commerce. The basic principle of the creditworthiness service is to register the basic description of products and vendors for authenticity, collect online and professional comments for reliability, and calculate the certified credentials or certificates for ability or quality. This article provides a technical framework for e-commerce creditworthiness. The creditworthiness models, algorithms, and tools are discussed. A prototype of this creditworthiness cloud service has been developed and applied to several sectors of e-commerce as pilot projects. [ABSTRACT FROM AUTHOR]

According to World Bank policy, countries remain eligible to borrow from the IBRD until they are able to sustain long-term development without further recourse to Bank financing. Graduation from IBRD is not an automatic consequence of reaching a particular income level, but rather is supposed to be based on a determination of whether the country has reached a level of institutional development and capital-market access that enables it to sustain its own development process without recourse to Bank funding. This paper takes a positive approach to IBRD graduation policy, investigating what income and non-income factors appear to have influenced graduation status in recent decades, based on panel data for 1982 through 2009. Explanatory variables include the per-capita income of the country, as well as measures of institutional development and market access that are cited as criteria by the graduation policy, and other plausible explanatory variables that capture the levels of economic development and vulnerability of the country. We find that the observed correlates of Bank graduation status are generally consistent with the stated policy. Countries that are wealthier, more creditworthy, more institutionally developed, and are less vulnerable to trade, financial, and other shocks are more likely to be graduates. Predicted probabilities generated by the model conform closely to the actual graduation and de-graduation experiences of Trinidad and Tobago and Korea, among other countries, and suggest that Hungary and Latvia may have graduated prematurely-a prediction subsequently borne out by the large loans that they later received from the IBRD in the wake of the global financial crisis. [ABSTRACT FROM AUTHOR]

The paper studies creditworthiness in a model with endogenous credit cost and debt constraints. Such a model can give rise to multiple candidates for steady state equilibria. We use new analytical techniques such as dynamic programming (DP) with flexible grid size to find solutions and to locate thresholds that separate different domains of attraction. More specifically, we (1) compute present value borrowing constraints and thus creditworthiness, (2) locate thresholds where the dynamics separate to different domains of attraction, (3) show jumps in the decision variable, (4) distinguish between optimal and non-optimal steady states, (5) demonstrate how creditworthiness and thresholds change with change of the credit cost function of the debtor and (6) explore the impact of debt ceilings and consumption paths on creditworthiness. [ABSTRACT FROM AUTHOR]

This paper addresses the valuation and behavior of European options subject to intertemporal writer default risk. The framework allows the timing of default and recovery value to be uncertain. Default is said to occur if the writer's creditworthiness violates a specified critical level-both stochastic. Various recovery scenarios are considered including linking recovery to the moneyness of the option at the time of default. In an application of the model, it is estimated that current customer margin requirements for exchange-traded options are set far in excess of the fair market value. [ABSTRACT FROM AUTHOR]