The coefficients of the VAR are estimated by
A)using a simultaneous estimation method such as TSLS.
B)maximum likelihood.
C)panel methods.
D)estimating each of the equations by OLS.

Question

Quizplus · Accepted Answer

In a Vector Autoregression (VAR) model, each equation is typically estimated separately using Ordinary Least Squares (OLS) because the right-hand side variables are the same across equations, making OLS efficient and consistent.

The Coefficients of the VAR Are Estimated by