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Time Varying VAR Model

Posted: Sat Apr 28, 2012 10:07 am
by AhmedSahlool
Hi,

I hope this finds you fine,

I try to apply the procedure tvarset, but I get always the message "## OP3. This Instruction Does Not Have An Option LAG"

Do you have an idea how could I solve this problem.

Thank you in advance,

Ahmed Sahloul

Re: Time Varying VAR Model

Posted: Sat Apr 28, 2012 10:13 am
by TomDoan
You'll have to show me what the @tvarset instruction is that you're trying to use.

Re: Time Varying VAR Model

Posted: Sat Apr 28, 2012 10:15 am
by AhmedSahlool
TVARSET(LAGS =1, SEFACTOR = 0.9, TIGHT= 0,2)
# CYCTOT CycToTD CYCRGDP LER Inflation1

Re: Time Varying VAR Model

Posted: Sat Apr 28, 2012 12:14 pm
by AhmedSahlool
Could you find out where is the problem?

Am I applying the procedure in wrong way?

Re: Time Varying VAR Model

Posted: Sat Apr 28, 2012 3:25 pm
by TomDoan
AhmedSahlool wrote:TVARSET(LAGS =1, SEFACTOR = 0.9, TIGHT= 0,2)
# CYCTOT CycToTD CYCRGDP LER Inflation1
That should be

@TVARSET(LAGS =1, SEFACTOR = 0.9, TIGHT= 0,2)
# CYCTOT CycToTD CYCRGDP LER Inflation1

TVARSET without the @ is trying to do the TVARYING instruction.

You also need to have TIGHT=0.2 not 0,2