simulation

[TomDoan]

I'm sorry to hear that. Simulating an AR(2) process is quite easy----as soon as you figure out what precisely is the AR(2) process that you want to simulate. You have not given a full description of an AR(2) process; you have to do that before you can do the simulations. The Hamilton and Enders books both have rather extensive analyses of the properties of 2nd order difference equations which is basically what a simulated AR(2) process will be.

[iloverats]

I'm sorry to hear that. Simulating an AR(2) process is quite easy----as soon as you figure out what precisely is the AR(2) process that you want to simulate. You have not given a full description of an AR(2) process; you have to do that before you can do the simulations. The Hamilton and Enders books both have rather extensive analyses of the properties of 2nd order difference equations which is basically what a simulated AR(2) process will be.

You do not read my quesition
Yes,Simulating an AR(2) process is quite easy
all 120
set x 1 2 = 1
set x 3 120 = 0.2*x{1}+0.5*x{2}+%ran(1)

but I want AR(2) model that contains the unit root or has a maximum root 0.9,

[TomDoan]

I read your question two months ago and I read the same question now. In neither case are you providing a well-formed description of an AR(2) process.

[iloverats]

I read your question two months ago and I read the same question now. In neither case are you providing a well-formed description of an AR(2) process.

I want the AR(2) process is a near unit root process

[TomDoan]

There are an infinite number of AR(2) processes with a maximal root of .9. You have to pick one. We will suspend your posting privileges if you keep repeating messages like this.