If either \(\bf{x}\) or y is a vector, it is converted to a matrix. The result
is a block diagonal matrix \(\left\lbrack {\begin{array}{cc}
{\bf{x}} & {\bf{0}} \\
{\bf{0}} & {\bf{y}} \\
\end{array}} \right\rbrack\).
References
Magnus, J. R. and H. Neudecker (1999) Matrix Differential Calculus with Applications in Statistics and Econometrics,
Second Edition, John Wiley.