Forecasting Latin America’s Country Risk Scores by Means of a Dynamic Diffusion Model
Figure 2
Representation of the estimation of the autonomous model parameters, , per cluster. Notice that countries in cluster 2 have similar values for autonomous decision except for Uruguay (identified by number 5 in cluster 2) whose gross public sector debt contracted in the second quarter of 2010, after five consecutive periods of sustained increase, and reached the equivalent to 59.5% of the GDP [30]. Analogously, in cluster 3 except for Trinidad and Tobago (identified by number 5), which is considered one of the wealthiest and most developed nations in the Caribbean [31]. The countries are in the same order as they appear in Table 3.
