¹⁰The dynamic analysis presented in this section follows the Generalized Impulse Response (GIR) approach proposed by Koop et al. (1996), and developed further in Pesaran, Shin (1998) for VAR models. This approach generalizes the traditional Orthogonalized Impulse Response method of Sims (1980), being invariant to the ordering of the variables in the SpVAR models, which makes the GIR functions a very useful tool to analyze the propagation of shocks across regions.