J.R. Paladines commented> Just a stability test

Muhammad Khurram Shabbir commented> No unit root problem..

Younas Iqbal Qazi coemmented> It shows that there is "satisfactory" stability as per

data inputs!

Keith Araneo-Yowell commented> It means you have a stationary stochastic process.

This output shows whether your model is stable. Since your roots are all inside the

complex unit circle your model will converge (the lagged variables' values won't have a

compounding effect on one another and the contemporary values will stabilize over time.

Sayed Hossain commented> All dots should be inside the circle to have stable model.

Nicat Gasim For the stable model, all roots must be inside in the unit circle. If the roots

outside or on the unit circle, it means that model is not stable.

Atif Salar commented> Only one dot is on line rest are inside with this model can be

treated as stable there cannot be 100% accuracy with some conditions we can say

model is stable

Nicat Gasim > All roots must be inside unit circle for stationary or stable model. Please

see Chatfield, Oliver Anderson, Box and Jenkins, Hamilton etc. Time Series analysis

books

Sami Ozturk commented> I think he posted this picture since one of the roots is on the

line. The value of that roots will be .99956 something like this. Since it is less than 1, we

would say that this is a stable model.Having this type of root value might be have some

indication such as some of your variables might suffer from stationarity problem or you

might be using non optimal lag number to run your model. You should recheck them to

get rid of this type of root problems. I think the goal of posting this picture is not inverse

root or normal root. It is all about having one root on the line. We learn or teach

checking the stability conditions by finding the inverse root. However, computer

programs' outputs are normal roots, which require all roots must be in the unit circle.

Prof. Nicat Gisam explained these differences.

Meo School of Research

Shishir Shakya

Noman Arshed

Hossain Academy Note

Univariate Models |

Multivariate Models |

Panel Data Model |

Ade Kutu

Afolabi Luqman

Abdullah Sonnet

Asad Zaman

Atiq Rehman

Burcu Özcan

Ghumro Niaz Hussain

Muhammad Anees

Mohammad Zhafran

Muzammil Bhatti

Monis Syed

Mine PD

Moulana N. Cholovik

Muili Adebayo Hamid

Nicat Gasim

Najid Iqbal

Nasiru Inuwa

Noman Arshed

Rapelanoro Nady

Saeed Aas Khan Meo

Seye Olasehinde-Williams

Suborno Aditya

Sayed Hossain

Shishir Sakya

Sheikh Muzammil Naseer

Tella Oluwatoba Ibrahim

Younes Azzouz