A new non-linear parametric model, the Stochastic Cyclical Convergence Model (SCCM), is used for measuring the … convergence of business cycles between euro area countries and the euro area aggregate. The model combines unobserved component … models with time-varying parameter models. The convergence between the two cycles is characterised by two time …

A new non-linear parametric model, the Stochastic Cyclical Convergence Model (SCCM), is used for measuring the … convergence of business cycles between euro area countries and the euro area aggregate. The model combines unobserved component … models with time-varying parameter models. The convergence between the two cycles is characterised by two time …

] Interconnectedness among financial institutions (banks) can play a major role in precipitating systemic financial crises. [2] Lack of … liquidating risky loans. Interconnectedness among their asset portfolios can obscure information about these portfolios, causing … interconnectedness. The optimal degree of regulation, which may depend on depositors’ degree of risk aversion, may not eliminate …

contrast, a bank’s interconnectedness is regarded as an indicator of its exposure to systemic risk. International interbank …