In Which Case Should a VAR Model Be Used Rather

question 10

Multiple Choice

In which case should a VAR model be used rather than a VEC model?

• A)the series are I(1)
• B)all series are stationary
• C)the series are not cointegrated
• D)you have more than 2 series

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Definitions:

Vicariously Liable

Legal principle where one party is held responsible for the actions or omissions of another party.

Joint

Pertaining to rights, obligations, or ownership shared between two or more parties.

Unlimited Liability

A legal structure where the owners of a business are personally responsible for all of the debts and obligations of the business, without any limit.

Unanimous Agreement

A consensus or decision where all members or parties involved fully agree without any dissent.