A note comparing support vector machines and ordered choice models' predictions of international banks' ratings
We find that support vector machines can produce notably better predictions of international bank ratings than the standard method currently used for this purpose, ordered choice models. This appears due to the support vector machine's ability to estimate a large number of country dummies unrestrictedly, which was not possible with the ordered choice models due to the low sample size. (C) 2011 Elsevier B.V. All rights reserved.
support vector machines ordered choice models international bank ratings