IN toda yamamotto Model implementation, if the AR root of VAR is coming Unstable then can we move forward with wald test for causality?

18 September 2019 0 8K Report

IN toda yamamotto Model implementation, if the AR root of VAR is coming out side the unit circle then is there any way to make the VAR stable or can I move forward with the wald exogeneity test for causality. is there Any other test of causality which can be applied on such a variable.

The variables are at I(1) and there is no cointegration between variables

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