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I have a trivariate Panel VAR system with the following variables: LnGDP (Natural log of GDP) Fiscal Expenditure (as % of GDP) Interest rate ( in %) LnGDP and interest rate are stationary at levels but fiscal expenditure is not. The first difference of the Fiscal Expenditure is stationary. My first question is if I run a Panel VAR model based on the above information, what can be the future consequences? My second question is provided the above regression is non-spurious, how do we interpret the coefficients in the model? Thank You

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