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Vector copulas

Yanqin Fan, Marc Henry

arXiv 14 Sep 2020 · Econometrics · publishedJournal of Econometrics (2022) · 7 citations (OpenAlex)

arXiv:2009.06558 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper introduces vector copulas associated with multivariate distributions with given multivariate marginals, based on the theory of measure transportation, and establishes a vector version of Sklar's theorem. The latter provides a theoretical justification for the use of vector copulas to characterize nonlinear or rank dependence between a finite number of random vectors (robust to within vector dependence), and to construct multivariate distributions with any given non overlapping multivariate marginals. We construct Elliptical and Kendall families of vector copulas, derive their densities, and present algorithms to generate data from them. The use of vector copulas is illustrated with a stylized analysis of international financial contagion.

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62
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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1V. Chernozhukov, A. Galichon, M. Hallin, and M. Henry (2017) Monge-Kantorovich depth, quantiles, ranks and signs0.9285480%
2R. McCann (1995) Existence and uniqueness of monotone measure-preserving maps0.8434375%
3A. McNeil, R. Frey, and P. Embrechts (2005) Quantitative Risk Management: Concepts, Techniques and Tools0.8434375%
4I. Medovikov and A. Prokhorov (2017) A new measure of vector dependence, with an application to financial contagion0.81142100%
5H. Kellerer (1964) Verteilungsfunktionen mit gegebenen Marginalverteilungen0.7374350%
6Y. Brenier (1991) Polar factorization and monotone rearrangement of vector‐valued functions0.7373367%
7S. Rachev and L. Rüschendorf (1990) A characterization of random variables with minimal L2 distance0.7373367%
8L. Rüschendorf (2013) Mathematical Risk Analysis0.7373367%
9N. Vorobev (1962) Consistent families of measures and their extensions0.7373367%
10I. Ekeland, A. Galichon, and M. Henry (2012) Comonotone measures of multivariate risks0.73732100%

Showing the top 10 of 62 scored citations.