Adverse shocks to stock markets propagate across the world, with a jump in one region of the world seemingly causing an … increase in the likelihood of a different jump in another region of the world. To capture this effect mathematically, we … Hawkes processes. In the model, a jump in one region of the world or one segment of the market increases the intensity of …

The recent financial crisis has shown how interconnected the financial world has become. Shocks in one location or … asset class can have a sizable impact on the stability of institutions and markets around the world. But systemic risk …

between integration and synchronization depends on the type of shocks hitting the world economy, and that shocks to global …