  We first pursue the study of how hierarchy provides a well-adapted tool for
the analysis of change. Then, using a time sequence-constrained hierarchical
clustering, we develop the practical aspects of a new approach to wavelet
regression. This provides a new way to link hierarchical relationships in a
multivariate time series data set with external signals. Violence data from the
Colombian conflict in the years 1990 to 2004 is used throughout. We conclude
with some proposals for further study on the relationship between social
violence and market forces, viz. between the Colombian conflict and the US
narcotics market.
