Unit Root Circle

[Yasin Kantar]

Hi guys,

I am currently doing a task, I am not really familiar with and I do need your help.

It says "After the SVAR model, check the stability of this VAR system by drawing a unit root circle." How do I draw a unit root circle in Stata?

Best,
Y

[Justin Niakamal]

See the entry for help varstable.

use http://www.stata-press.com/data/r13/lutkepohl2, clear
var dln_inv dln_inc dln_consump if qtr>=tq(1961q2) & qtr<=tq(1978q4)
varstable, graph

   Eigenvalue stability condition
  +----------------------------------------+
  |        Eigenvalue        |   Modulus   |
  |--------------------------+-------------|
  |   .5456253               |   .545625   |
  |  -.3785754 +  .3853982i  |   .540232   |
  |  -.3785754 -  .3853982i  |   .540232   |
  |  -.0643276 +  .4595944i  |   .464074   |
  |  -.0643276 -  .4595944i  |   .464074   |
  |  -.3698058               |   .369806   |
  +----------------------------------------+
   All the eigenvalues lie inside the unit circle.
   VAR satisfies stability condition.

[Yasin Kantar]

Thank you very much!