Table 4.
Optimal lags in the VAR model for variables
| Row | Variable name | Lag | LogL | FPE | AIC | HQC | SBC |
|---|---|---|---|---|---|---|---|
| 1 | Health expenditure | 1* | −224.783 | 1.37e+10 | 23.871 | 23.888 | 23.971 |
| 2 | GNP | 1* | −277.114 | 3.37e+11 | 29.38 | 29.397 | 29.479 |
| 3 | GDP | 1* | −275.701 | 2.90e+11 | 29.231 | 29.248 | 29.331 |
| 4 | National income | 1* | −274.550 | 2.57e+11 | 29.110 | 29.127 | 29.210 |
| 5 | Consumption | 1* | −60.026 | 40.123 | 6.529 | 6.545 | 6.628 |
| 6 | Liquidity | 1* | −234.603 | 3.84e+09 | 24.905 | 24.922 | 25.005 |
| 7 | Inflation rate | 1* | −61.043 | 44.661 | 6.636 | 6.653 | 6.735 |
| 8 | Budget deficit | 1* | −205.93 | 2.46e+09 | 24.461 | 24.471 | 24.559 |
| 9 | Gini coefficient | 1* | 62.693 | 0.000 | −6.388 | −6.372 | −6.289 |
| 10 | Unemployment rate | 6* | −16.916 | 1.077 | 2.910 | 2.892 | 2.997 |
| 11 | Population rate | 1* | −106.506 | 5348.848 | 11.421 | 11.438 | 11.521 |
The SBC, AIC, and HQC in these lagshave the minimum value and these lags are optimal. *=These lags are optimal, FPE=Final prediction error, LR=Likelihood ratio, SBC=Schwarz-Bayesian criteria, AIC=Akaike criteria, HQC=Hannan-Quinn criteria, GNP=Gross national production, GDP=Gross domestic production