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........ (b) The table below shows the different criteria used to determine the appropriate lag length of the VAR model. What is the optimal lag
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(b) The table below shows the different criteria used to determine the appropriate lag length of the VAR model. What is the optimal lag length? [2] VAR Lag Order Selection Criteria Endogenous variables: DEXRATE DCP Exogenous variables: C Date: og\26t21 Time: 19:07 sample: 2010M02 2021M08 Included observations: 130 .8_461881 540452 Lag Log L 544 0680 564 6249 569.0219 569 8486 571.1397 575.7100 578.3977 579 1319 580.6602 40.1648g 8.455761 1.564410 2.403519 8.367180 4.837851 1.298896 2.656g03 8.19+07 6.35+07 6.31+07' 6.63+07 6.91+07 6.85+07 7.00+07 7.36+07 7.65+07 .8_33g508 -8.594229 .8.600336 .8_551517 .8_50g842 .8_518616 .8_498427 .8_448183 .8_410157 .8.2g5392 -8.379757 -8242705 -8.112799 -8.033341 -7.924920 -7.786444 -7.660186 .8_321583 .8_510708 .8_426036 .8_348510 .8_321433 .8_265392 .8_179297 .8_10541g indicates lag order selected by the criterion LR: sequential modified LR test statistic (each test at 5% level) FPE: Final prediction error AIC Akaike information criterion SC: Schwarz information criterion HQ Hannan-Quinn information criterion
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