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  • Conducting Wald test of equality of coefficients using VAR model

    Hi everyone,

    I am running a VAR model where my dependent variable is total expenditure, my dependent variable of interest is energy price and controls included are income and interest rate. I am trying to run a Wald test of equality to determine whether the response of expenditure is symmetric to positive and negative changes in energy price. To do this I have generated a variable which includes all positive shocks and a variable which includes all negative shocks. I ran a VAR with all variables, including the generated ones for positive and negative shocks, included. I have then tried the code 'test energy_pos = - energy_neg' to run the test, however an error message stating "regressor energy_pos not found" has been displayed.

    Any advice would be much appreciated, thanks!
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