. In order to describe such situations, copula-based models have been studied during the last year. In this paper, we …

gravity equations are estimated by Copula-based Markov switching seemingly unrelated regression approach. The best …'s t copula is applied for joint distribution. Analyzing the bilateral trade flow is separated into two situations, namely …

fundamental characteristic. We compare our empirical findings with a single Gaussian copula, a correlation-weighted average of … Gaussian copulas, the K-copula which directly addresses the nonstationarity of dependencies as a model parameter, and the … skewed Student's t-copula. The K-copula covers the empirical dependence structure on the local scale most adequately, whereas …