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Hello,

I have received this "VAR does not satisfy the stability condition" on Lag Structure AR roots table, how do we control this? what is the remedy, i have to continue to impulse response function and its not allowed when VAR is not stable. Please help, I am using Eviews 7.
Regards,

Deby

It was a silly mistake, problem solved...thanks.

Hi All,

I am running into a similar problem "VEC specification imposes two unit roots"...lelel series are non-stationary...i found a cointegrating relationship however...this problem...any suggestions? Should I estimate VAR instead?

Regards,
Buratino.

It was a silly mistake, problem solved...thanks.

Hi Deby

Can you please tell me how you solved your problem? I am stuck with the same exact problem. All my series are stationary in levels however, but my VAR is unstable. How can I solve this so I am able to interpret my IRFs and Variance decomposition?

Thanks

Taimi