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Represent a var (2) as var(1

Posted: Tue Jan 15, 2019 9:44 am
by javvk
Hi,
I have two ar(2) series, and I want to create a var (1). But when I estimate a var in eviews, it gives to me a var (2).
These are my ar (2) series

xt = 0,2xt−1 + 0,3xt−2 + et
zt = 0,4zt−1 + 0,1zt−2 + ut

et and ut - N(0,1)
:cry:

is there a command to represent a var (2) as var(1)

Re: Represent a var (2) as var(1

Posted: Tue Jan 15, 2019 10:38 am
by EViews Matt
Hello,

You can create a VAR of any order you wish. The default lag interval is "1 2", creating a VAR with lags for t-1 and t-2, but you can change the interval to "1 1" to create a VAR with lags for only t-1.