VAR Model

[Hasna]

Hi,

I have estimated a VAR model with 3 variables used in the model and based on the VAR model criteria I have selected 7 period lag.
All the criterion are good except VAR Stability AR Root. One AR Root fall on the unit circle and rest are inside the circle. My question is can I call this model pass the VAR stability test or not?

Thanks/Hasna

[londonphd]

This condition must be satisfied, have a look at http://davegiles.blogspot.co.uk/2013/06 ... model.html for more.

[Hasna]

Thank you LondonPhD for all the replies!