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  • VAR Model error message: the exogenous variables may not be collinear with the dependent variables, or their lags

    Hello everyone, I would like to do a VAR analysis. I have the following model: My main hypothesis is the effect of Violent Conflicts on Innovation Performance, with the mediators Opportunity Recognition and Entrepreneurial Activity.
    I would like to first determine the situation between Violent Conflicts and Opportunity Recognition, then Opportunity Recognition and Entrepreneurial Activity, then Entreprneurial Activity and Innovation Performance.
    Violent Conflicts -> Opportunity Recognition -> Entrepreneurial Activity -> Innovation Performance
    Now I entered in Stata the command to the VAR for Violent Conflicts and Opportunity Recognition. However, I get the following error message:
    the exogenous variables may not be collinear with the dependent variables, or their lags
    Can anyone tell me where the problem is?

    Code:
    tsset ID year, yearly
    
    var confl_intensity_zero opport_recog, lags(1/1) exog(wellbeing authority inflation fem_rate population population unemploy_rate refugee_pop gdp_capita gdp_growth lpi develop_i dicator fof grad age_18_24 broadband telephone internet_user) lutstats
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  • #2
    Not sure var works with panel data. pvar or xtvar are options. The error may be triggered by repeated dates. Dump the exog part and see what happens.

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