The committee for the annual award consisting of Vjekoslav Bratić (Institute of Public Finance), Milan Deskar Škrbić (Croatian National Bank), Tomislav Globan (Faculty of Economics, Zagreb), Katarina Ott (Institute of Public Finance) and Marina Tkalec (The Institute of Economics, Zagreb) has decided on the results of the 2022 competition.

In the regular category, the 50,000 HRK award, the diploma and the medal go to Tihana Škrinjarić (Croatian National Bank) for the paper "Introducing a composite indicator of cyclical systemic risk in Croatia: possibilities and limitations" which will be published in Public Sector Economics journal. Because of the poor quality of the submitted students’ articles, there will be no award in the student category this year. 

The awarded paper deals with the construction of a composite indicator of cyclical systemic risk accumulation focusing on Croatia. It is important in macroprudential policymaking, to track the position of the economy in the financial cycle. Moreover, the countercyclical capital buffer depends on the timely and accurate estimation of cyclical risk accumulation. The credit gap defined by Basel Committee on Banking Supervision and European Systemic Risk Board has shown many flaws in practice. That is why the author deals with existing composite indicators and the possibilities of introducing them in Croatia, giving a critical overview of the methodological approaches, with suggestions for their improvement, focusing on the specifics of Croatian data.

Photo: Davor Pongracic/Cropix