The peak inelastic displacement of single‐degree‐of‐freedom bilinear systems (Sdi) is an effective intensity measure linking ground‐motion features to the inelastic response and subsequent structural and nonstructural damage of engineered systems. This study develops a region‐specific ground‐motion model for Sdi considering source, path, and site effects and explicitly accounting for the spatial correlation between intraevent residuals when the model parameters are estimated. The model is developed based on 2427 two‐component horizontal ground‐motion records from 85 events in northern Italy with magnitudes ranging from 4.0 to 6.4 and source‐to‐site distances less than 200 km. An exponential stationary and isotropic model is considered to represent the spatial correlation properties of Sdi (after scrutinizing the appropriateness of the underlying assumptions for such a model). Comparisons are performed with existing models in the literature in terms of Sdi estimates, as well as the (spatial correlation) effective range parameter. Two practical applications of the developed model are presented: one on estimating the spatial distribution of Sdi (as an essential ingredient for seismic loss assessments) and one on the engineering validation of region‐specific ground‐motion simulations. Challenges regarding such validations are also discussed.

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