VAR Models

VAR (Vector Autoregression) models are statistical tools used to analyze and predict multiple interconnected time series data simultaneously. They examine how each variable's past values influence its future and the future of other variables. This approach helps identify the relationships between different factors over time, such as economic indicators, stock prices, or sales data. By capturing these dynamics, VAR models enable forecasting and understanding the underlying interactions within complex systems, making them useful in sectors like economics, finance, and policy analysis.