Hi, Can someone help me verify that the following code generate a bivariate vector "z" that follows a VAR(2) structure? The first AR matrix is 0.6  0.0 0.0  0.6 and the second AR matrix is 0.18  0.00 0.00  0.18 This vector series also has a linear time trend with coefficient vector, g = 0.3 0.5 Thanks! Fei ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ PROC IML; mean_eta  = J(1,2,0); sigma_eta = {1.0 0.5,                     0.5 1.0}; eta       = randnormal(300,Mean_eta,Sigma_eta); f    ={ 0.6  0.0, 0.0  0.6}; g    = {0.3, 0.5}; t    = T(do(1,300,1)); z = J(300,2,0); do i = 3 to 300;   z[i,] = T( f*T(z[i-1,]) + 0.3#f*T(z[i-2,]) + g*t ) + eta[i,]; end; Quit; ... View more