Control and out-of-sample validation of dependent risks

  • Christian Gourieroux
  • , Wei Liu

Research output: Contribution to journalArticlepeer-review

Abstract

This article introduces a framework to determine and allocate capital reserves to multiple dependent business lines, with or without overall reserve level constraints. The proposed methodology emphasizes the role of the loss function in the validation criterion and its conditional interpretation. Univariate and multivariate examples are discussed in detail.

Original languageEnglish
Pages (from-to)683-707
Number of pages25
JournalJournal of Risk and Insurance
Volume76
Issue number3
DOIs
Publication statusPublished - 1 Sept 2009
Externally publishedYes

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