Question: Consider the following vector autoregressive model: where ytis a p-dimensional vector of variables determined by klags of all pvariables in the system, ut is a

Consider the following vector autoregressive model:

where ytis a p-dimensional vector of variables determined by klags of all pvariables in the system, ut is a vector of errors, beta zero is a vector of constant term coefficients and beta iare matrices of coefficients on the ith lag of y .

Ifp=2andk=3, write the equations of the VAR in full, carefully defining any new notation you use.

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