Multivariate stochastic volatility for herding detection: Evidence from the energy sector

A-Tier
Journal: Energy Economics
Year: 2022
Volume: 109
Issue: C

Authors (3)

Tsionas, Mike G. (not in RePEc) Philippas, Dionisis (École Supérieure des Sciences ...) Philippas, Nikolaos (not in RePEc)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The paper proposes a multivariate asymmetric stochastic volatility approach, allowing for common factors that detect and measure herding behavior conditional on the stylized facts of asset returns and another factor that captures non-herding behavior. Applying our approach to the constituents of the S&P 500 energy sector in periods of high uncertainty, the findings reveal a wealth of information on herding detection related to asset returns' co-movements and volatility encountered by the energy sector. We also examine to what degree macroeconomic indicators' uncertainty influences the common factors on herding detection. We conclude that stylized facts of energy assets experience significant changes, arising from the increased systemic market risk and crude oil prices that are exposed to.

Technical Details

RePEc Handle
repec:eee:eneeco:v:109:y:2022:i:c:s0140988322001402
Journal Field
Energy
Author Count
3
Added to Database
2026-01-29