Regression modelEconometrics / time series

Vector Autoregression (VAR)

Vector Autoregression is a multivariate time-series model in which each variable is regressed on its own lags and the lags of all other variables in the system. Originally proposed by Sims (1980) as a data-driven alternative to large structural macroeconomic models, VAR has become the standard workhorse for dynamic analysis in empirical economics and finance.

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Sources

  1. Sims, C. A. (1980). Macroeconomics and Reality. Econometrica, 48(1), 1–48. DOI: 10.2307/1912017
  2. Lütkepohl, H. (2005). New Introduction to Multiple Time Series Analysis. Springer. ISBN: 978-3540401728

Related methods

Referenced by

ScholarGateVector Autoregression (Vector Autoregression Model). Retrieved 2026-06-04 from https://scholargate.app/tr/econometrics/vector-autoregression