A new approach to assessing model risk in high dimensions

B-Tier
Journal: Journal of Banking & Finance
Year: 2015
Volume: 58
Issue: C
Pages: 166-178

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

A central problem for regulators and risk managers concerns the risk assessment of an aggregate portfolio defined as the sum of d individual dependent risks Xi. This problem is mainly a numerical issue once the joint distribution of X1,X2,…,Xd is fully specified. Unfortunately, while the marginal distributions of the risks Xi are often known, their interaction (dependence) is usually either unknown or only partially known, implying that any risk assessment of the portfolio is subject to model uncertainty.

Technical Details

RePEc Handle
repec:eee:jbfina:v:58:y:2015:i:c:p:166-178
Journal Field
Finance
Author Count
2
Added to Database
2026-01-29