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)
