One of the objectives recent prudential regulation is to separate computation required capital for short- and long-run risks. This paper provides a coherent framework define, compute, update these components. We provide different examples, among which transition low carbon economies.

this paper estimates a structural cointegrating varx model with exogenous variables for iran. the long-run macroeconomic relationships are identified and tested within this framework. we make use of the generalized forecast error variance decomposition to analyze the dynamic properties of the model in response to different shocks. we also examine via the persistence profiles, the speed of adjus...