Using the attached workfile, I estimated a BVAR and created a model object with the intention of using the model for forecasting. I used the following commands:
Code: Select all
smpl @all
var mvar.bvar(prior=lit, initcov=full, l1=0.1, l2=0.1, l3=0.5) 1 1 y d(p) d(i)
mvar.makemodel(mod)
However, upon checking the model object, it seems that only the coefficients for the 1st equation are saved in the model object while the coefficients for the 2nd and 3rd equations are all equal to 0. Can anyone help me figure out why this is the case? Thanks!