Development Economics X Paper Model Twenty-Nine
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This paper introduces a novel credit scoring framework for developing economies, leveraging advanced concepts from number theory to enhance robustness and analytical power in data-scarce, volatile environments. Our approach integrates modular arithmetic, Diophantine equations, continued fractions, primality tests, number field sieve techniques, combinatorial number theory, and the Chinese Remainder Theorem to address specific credit scoring challenges. We present a series of theorems demonstrating the theoretical advantages of our model, including a \sigma-improvement in predictive accuracy over traditional logistic regression models and robustness to up to \delta percent missing data points. This work contributes to the theoretical understanding of number theory applications in finance and provides practical tools for improving credit access in economically vulnerable regions. Future research directions and policy implications are discussed in closing.
Opoku-Agyemang, Kweku (2024). "Enhancing Credit Scoring Models in Developing Economies: A Number-Theoretic Approach." Development Economics Paper Model Twenty-Nine.
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