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A method to decompose the systemic risk in geographic areas

  • Anna Maria Fiori
  • Francesco PorroEmail author
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Abstract

In this paper, a method for evaluating systemic risk in different geographic areas is presented. The proposed methodology is based on the decomposition by subpopulations of the Gini index, largely used to assess the inequality of income and wealth. This decomposition procedure follows a two-step approach that goes beyond the “classical” decomposition Within and Between components, also allowing the assessment of the contribution to the total inequality for each subpopulation.

Keywords

Systemic risk Inequality index Decomposition by subpopulations Gini index 

Notes

Acknowledgements

The authors would like to thank Igor Valli for his valuable help with the computations and two anonymous referees for their useful comments.

Compliance with ethical standards

Conflict of interest

The authors declare that they have no conflict of interest.

Ethical approval

This article does not contain any studies with human participants or animals performed by any of the authors.

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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2019

Authors and Affiliations

  1. 1.Dipartimento di Statistica e Metodi QuantitativiUniversità degli Studi di Milano-BicoccaMilanItaly

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