This paper introduces a new approach to modelling the conditional variance in a multivariate setting. It is essentially a combination of the popular GARCH model class with a spatial component, inspired by generalized space-time models. The resulting spatial GARCH model takes into account both...

Regional employment volatility is an undesirable phenomenon which describes a strongly fluctuating pattern of employment, thus, "instability" of a local economy. In the literature on this field, much of the attention has been paid to two main issues. First, a group studies has investigated the...