Hello,
I have received this "VAR does not satisfy the stability condition" on Lag Structure AR roots table, how do we control this? what is the remedy, i have to continue to impulse response function and its not allowed when VAR is not stable. Please help, I am using Eviews 7.
Regards,
Deby
How to make VAR stable.
Moderators: EViews Gareth, EViews Moderator
Re: How to make VAR stable.
It was a silly mistake, problem solved...thanks.
Re: How to make VAR stable.
Hi All,
I am running into a similar problem "VEC specification imposes two unit roots"...lelel series are non-stationary...i found a cointegrating relationship however...this problem...any suggestions? Should I estimate VAR instead?
Regards,
Buratino.
I am running into a similar problem "VEC specification imposes two unit roots"...lelel series are non-stationary...i found a cointegrating relationship however...this problem...any suggestions? Should I estimate VAR instead?
Regards,
Buratino.
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Re: How to make VAR stable.
Mbila wrote:It was a silly mistake, problem solved...thanks.
Hi Deby
Can you please tell me how you solved your problem? I am stuck with the same exact problem. All my series are stationary in levels however, but my VAR is unstable. How can I solve this so I am able to interpret my IRFs and Variance decomposition?
Thanks
Taimi
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