Applied Research Methods
We will use and further develop asymptotic theory for GARCH-type models and models for tail risk, as well as recent results on the elicitability of risk measures. These methods will be combined with simulation-based approaches in order to validate theoretical results and explore finite-sample properties. Moreover, we will apply the proposed methodologies to market data of financial companies, covering the financial networks of US and European banks. This will require substantial empirical work utilizing large data sets and computational resources.
Relevant Publications
- Hautsch N., Schaumburg J., and Schienle M. (2015). Financial Network Systemic Risk Contributions. Review of Finance, 19 (2), 685-738.
- Hautsch N., Betz F., Peltonen T., and Schienle M. (2016). Systemic Risk Spillovers in the European Banking and Sovereign Network. Journal of Financial Stability, 25, 206-224.
- Banulescu D., Hurlin C., Leymarie J., and Scaillet O. (2019). Backtesting Marginal Expected Shortfall and Related Systemic Risk Measures. R&R in Management Science.
- Hautsch N., Schaumburg J., and Schienle M. (2014). Forecasting Systemic Impact in Financial Networks. International Journal of Forecasting, 30 (3), 781-794.
- Hurlin C., Leymarie J., Patin A. (2018). Loss Functions for Loss Given Default Model Comparison. European Journal of Operational Research, 268(1), 348-360.
