IRIS Toolbox Reference Manual

## lrtest

Likelihood ratio test for VAR models

#### Syntax

    [Stat,Crit] = lrtest(V1,V2,Level)

#### Input arguments

- `V1` [ VAR ] - Unrestricted VAR model.

- `V2` [ VAR ] - Restricted VAR model.

- `Level` [ numeric ] - Significance level; if not specified, 5 percent significance is used, `Level=0.05`.

#### Output arguments

- `Stat` [ numeric ] - LR test stastic.

- `Crit` [ numeric ] - LR test critical value based on chi-square distribution.

#### Description

#### Example

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