Vector Error Correction Model An Eviews

Stationarity and Cointegration Analysis

Vector Autoregressive (VAR) models •Multiequation time series model •Considers a number of interrelated variables •Imposes zero restrictions on estimation of parameters •Atheoretical i.e. no strict reliance on theory to formulate the model •‘Everything causes everything’ •However, the number of estimated parameters makes the

  Model, Vector