A compositional analysis of systemic risk in european financial institutions

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SUMMARY

    The rising globalization of financial services and the consequences of the 2007-2009 financial crisis have prompted a vigorous debate on banking and insurance regulation in view of ensuring stability to the whole financial system. Focusing on firms listed in the EuroStoxx 50 Index, Petrella et_al find that, between 2008 and 2017, the systemic risk contribution of France dominated all other countries, followed by Germany, Italy, and Spain. The novelty of the study consists in adopting the principles of Compositional Data (CoDa) analysis (Aitchison 1982) to investigate the role of European countries as proportions . . .

     

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