modified VAR

[giovanna]

Hi!

I am trying to estimate the model attached (sorry it was getting complicated writing it here). What I did is I estimated a VAR with X (corresponding to "trades" in the word document) and R endogenous, LNT ( which is the name of the series giving the log of T) as exogenous.
I then made a system > ordered by variable > modified as follows:

R = C(1)*R(-1) + C(2)*R(-2) + C(3)*R(-3) + C(4)*R(-4) + C(5)*R(-5) + (C(11)+C(22)*LNT) *X +(C(6)+ C(23)*LNT(-1))*X(-1) + (C(7)+ C(24)*LNT(-2))*X(-2) + (C(8)+ C(25)*LNT(-3))*X(-3) + (C(9)+ C(26)*LNT(-4))*X(-4) + (C(10)+C(27)*LNT(-5))*X(-5)

X = C(12)*R(-1) + C(13)*R(-2) + C(14)*R(-3) + C(15)*R(-4) + C(16)*R(-5) + (C(28)*LNT(-1)+C(17))*X(-1) + (C(29)*LNT(-2)+C(18))*X(-2) + (C(30)*LNT(-3)+C(19))*X(-3) +(C(31)*LNT(-4)+C(20))*X(-4) + (C(32)*LNT(-5)+C(21))*X(-5)

Is it correctly specified?

Thank you in advance for your help!