The lag length in a VAR using the BIC proceeds as follows: Among a set of candidate values of p, the estimated lag length xxxis the value of p
A) For which the BIC exceeds the AIC
B) That maximizes BIC(p)
C) Cannot be determined here since a VAR is a system of equations, not a single one
D) That minimizes BIC(p)
Question 2
A VAR with k time series variables consists of
A) k equations, one for each of the variables, where the regressors in all equations are lagged values of all the variables
B) a single equation, where the regressors are lagged values of all the variables
C) k equations, one for each of the variables, where the regressors in all equations are never more than one lag of all the variables
D) k equations, one for each of the variables, where the regressors in all equations are current values of all the variables
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