Write out a VAR(2) for these variables. Yt = a1+ ô t + Ø Y t-1 + Ø Y t-2 + B X + B 12 X t-2 + e lt

Algebra and Trigonometry (MindTap Course List)
4th Edition
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter0: Are You Ready For This Course?
Section0.B: Diagnostic Test: Algebraic Expressions
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Write out a VAR(2) for these variables.
Yt = a1+ ô t + Ø Y t-1 + Ø Y t-2 + B X + B 12 X t-2+ e lt
X t= a 2+ ô 21t + Ø 2111Y t-1+ Ø 2212Y t-2+ B 2111X t-1t-1+ B 22X t-2+ e2t
Transcribed Image Text:Write out a VAR(2) for these variables. Yt = a1+ ô t + Ø Y t-1 + Ø Y t-2 + B X + B 12 X t-2+ e lt X t= a 2+ ô 21t + Ø 2111Y t-1+ Ø 2212Y t-2+ B 2111X t-1t-1+ B 22X t-2+ e2t
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