Constructing a financial stress index for Vietnam : an application of autoregressive conditional heteroskedastic models

Nguyen Chi DUC, Thuy Ai HO

Research output: Book Chapters | Papers in Conference ProceedingsBook ChapterResearchpeer-review

3 Citations (Scopus)

Abstract

This paper constructs an index to measure financial stress for Vietnam with monthly data from April 2007 to December 2016. Various measures of stress are selected based on literature and Vietnam’s practice. An important stress measure, the volatility of stock market, bond market, money market and banking sector, is estimated by variants of the general autoregressive conditional heteroskedasticity (GARCH) model. Individual stress variables are combined together to make an aggregate index using equal variance weighting scheme. The constructed index is a useful tool for policy makers to monitor the riskiness of domestic financial system as well as academics to conduct further research about financial crisis.
Original languageEnglish
Title of host publicationEconometrics for financial applications
PublisherSpringer-Verlag GmbH and Co. KG
Pages562-583
Number of pages22
ISBN (Print)9783319731490
DOIs
Publication statusPublished - 1 Jan 2018

Publication series

NameStudies in Computational Intelligence
Volume760
ISSN (Print)1860-949X

Fingerprint

Dive into the research topics of 'Constructing a financial stress index for Vietnam : an application of autoregressive conditional heteroskedastic models'. Together they form a unique fingerprint.

Cite this