product of selected economies
seasonally adjusted data, constant prices, 2007 = 100...Broken down by main industrial groupings, the exports
75
85
90
95
...
exposure)
3 (Medium level of systemic risk exposure)
Range 0 – 19
20 – 39
80 – 100...risks remain elevated, with changes in their geographical
distribution
%
0
...
equivalent to the maximum likelihood estimator of the parameters
Ψ = {γV , cV , γM , cM...ΣE ,ΣR ,ΠE ,ΠR}:
Ψ̂ = arg min
Ψ
T∑
t=1
ε′tΣ
−1
t εt
For given γV , cV , γM ,...
