Telling tales from the tails: High‐dimensional tail interdependence

B-Tier
Journal: Journal of Applied Econometrics
Year: 2019
Volume: 34
Issue: 5
Pages: 779-794

Authors (3)

Arnold Polanski (not in RePEc) Evarist Stoja (not in RePEc) Frank Windmeijer (Oxford University)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

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

Abstract

We propose a simple and flexible framework that allows for a comprehensive analysis of tail interdependence in high dimensions. We use co‐exceedances to capture the structure of the dependence in the tails and, relying on the concept of multi‐information, define the coefficient of tail interdependence. Within this framework, we develop statistical tests of (i) independence in the tails, (ii) goodness‐of‐fit of the tail interdependence structure of a hypothesized model with the one observed in the data, and (iii) dependence symmetry between any two tails. We present an analysis of tail interdependence among 250 constituents of the S&P 250 index.

Technical Details

RePEc Handle
repec:wly:japmet:v:34:y:2019:i:5:p:779-794
Journal Field
Econometrics
Author Count
3
Added to Database
2026-01-29