# Sandbox

 Wikirating needs somebody who wants to update the economic data for the SWI. Last update: 2019-12-23 - Credit rating table

## Criteria

The Sovereign Wikirating Index (SWI) uses the following five criteria (with weights):

The resulting value is adjusted by multiplying it with a Scaling factor, which is composed by the Human Development Index (HDI) (60% weight), the Corruption Perceptions Index (20% weight) and the Political Instability Index (20% weight).

## Calculations

Each criterium is calibrated with respect to the relative minimum and maximum value of all countries. For some criterion a threshold value is defined in order to avoid distorted values. The calculated values are done with a spreadsheet (wr_swi_method+data_2011-09-26.xls).

Short Title Long Title Value Weight Real Min Real Max SWI Min SWI Max
HD Human Development Index Weighted index of development indicators 0.6 0 1 0 1
CO Corruption Perceptions Index Index of perceived corruption 0.2 0 10 0 1
PI Political Instability Index Index of political instability 0.2 0 10 0 1
PD Public Debt Debt/GDP as %, reflects the economies ability to honour loans. 0.5 0 inf 15 90
AB Current Account Balance Current account balance as % of GDP, reflects foreign inflows and outflows. 0.2 -inf +inf -20 20
PG GDP Growth Domestic growth an an annual % 0.1 -1 inf -0.1 0.1
IR Consumer Price Index CPI as % 0.1 -1 inf 0.02 0.2
UR Unemployment Rate Rate of unemployment as % 0.1 0 1 0.03 0.3
R Rating Result of SWI calculation 1 0 100 0 100

#### Formula

$R=({rR-\min rR \over \max rR-\min rR}\times 100)+(100-nrR)\times {\max rR-rR \over \max rR-\min rR}$ Where: $rR=((PD\times wPD)+(AB\times wAB)+(PG\times wPG)+(IR\times wIR)+(UR\times wUR))\times SF$ Where: $SF=(HD\times wHD)+(CO\times wCO)+(PI\times wPI)$ #### General Variable Modifiers

For example, the variable AB.

• AB = Number used in calculations for SWI.
• rAB = Raw or real value, actual data from source in whichever format it is acquired.
• wAB = Weighting value for the data.
• minAB = Floor value of variable, will cause ABC to equal 0 or 100 if ABC is below this value.
• maxAB = Ceiling value of variable, will cause ABC to equal 0 or 100 if ABC is above this variable.
• nAB = Number of ratings (for rating)

So for instance, if the real value (rAB) was 4 on a 10 point scale, this would be divided by 10 to create the value for calculations (AB) which, in calculations, is multiplied by the weighting (e.g. 0.5 for 50% weight.)

#### Scaling Factor

• HD = $rHD$ • CO = $rCO \over 10$ • PI = $rPI \over 10$ #### General Formula

$100-{XX-\min XX \over \max XX-\min XX}\times 100$ Applies to: PD, AB, PG, IR, UR