Traditionally, the analysis of regional economic convergence is based on the notions of β-convergence and σ-convergence. However, both of these approaches have several drawbacks and limitations. To overcome these difficulties, we apply a more recent non-parametric approach in the convergence...

This paper investigates how the ordering of variables affects properties of the time-varying covariance matrix in the Cholesky multivariate stochastic volatility model. It establishes that systematically different dynamic restrictions are imposed when the ratio of volatilities is time-varying....