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In this paper, I analyze how corruption in one country may be affected by its neighbors' corruption. It seeks to … explain why corruption is perpetuating in large geographical areas populated by developing countries despite anticorruption … efforts made in the single country. In our empirical approach, we capture the spatial dependency by regional corruption. Three …
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This paper proposes Spillover Persistence as a measure for financial fragility. The volatility paradox predicts that fragility builds up when volatility is low, which challenges existing measures. Spillover Persistence tackles this challenge by exploring a novel dimension of systemic risk: loss...
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