Question: Define a stationary VAR model with an example. A researcher estimated a VAR model of two variables. The estimated results are given below: t t-1

Define a stationary VAR model with an example. A researcher estimated a VAR model of two variables. The estimated results are given below:

t t-1 t 1.2 -0.4 Y = Y + 0.6 0.3 ????

???? ????

???? ????

???? ????

Do you think that the VAR model is stationary and stable? Why?

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