VARIABLES Instruction

VARIABLES list of endogenous variables

VARIABLES is one of the subcommands of SYSTEM for setting up a VAR. Use it to list the dependent variables of the system.

Wizard

The Time Series—VAR (Setup/Estimate) Wizard sets up a VAR, including the VARIABLES instruction needed for a model.

Parameters

list of ...

These are the dependent variables for the equations in the system.

If you are setting up an error-correction model using ECT, list the undifferenced variables. The restrictions are handled automatically by RATS.

Notes

If you do not use a prior, the order of subcommands VARIABLES, LAGS and DETERMINISTIC is unimportant.

Example

system(model=var12)

variables tbillus tbillcan m1us m1can exrcan

lags 1 to 12

det constant

end(system)

sets up a five variable VAR with twelve lags on each variable.