State one advantage of using a Vector Auto regression (VAR) model. [1]
A. Answer all questions. (15 marks, 1 mark each) 1. Violating which of the classical linear regression model assumption will lead to a biased OLS estimator? [1] 2. In a system of equations given below, Y’s are endogenous while X’s are exogenous. Which of the equation is just identified? Explain. [2] 3. State one advantage […]