HOW I APPLY CAUSALITY TEST IN PANEL DATA

[ANDROO1988]

HI
i need apply causality test in panel data. my equation is : y= a0+a1 X + a2 Z + ... + E
that x , z are major variable in my model. now, how i can test causality between (Y,X,Z).? I have eviews 7

[EViews Gareth]

EViews 7 does not have panel causality testing built in. EViews 8 does.

[ANDROO1988]

thanks. how i apply this test in eviews8? can you tell me it step by step? please.

[EViews Gareth]

Open a group, click on View->Granger Causality.

[ANDROO1988]

ok. thanks. i test it.

[James71]

Dear Gareth,

I can´t perform a Granger causality panel test with Eviews 8. I do not why. Could you help me?
As usual when working with panel data, i have created a pool object (in fact I've taken a Eviews 7 workfile). Then I make a group with the two panel variables of interest (string ?), and then: View-Granger causality... and I get what I got with Eviews 7: individual granger tests for all the potential combinations of individual variables. What is the mistake I'm making?
Best

[EViews Gareth]

You need a panel workfile, not a pool.

[James71]

Many thanks for your extremely quick answer :)

You need a panel workfile, not a pool.

[stijn545]

I'm also doing Granger causality on panel data. I was wondering, if I have data for variables A and B in 2010 and 2013, is the following then correct. First, I apply a Granger causality (using zero lags) on A-2010 and B-2013, and then i do the same for B-2010 and A-2013. The only significant F-statistic out of the 4 resulting ones is that A-2013 does not cause B-2010, while all the others are not significant. Then I'm having a hard time coming to conclusions too; what useful information can I draw from a statement which only tells me that A-2013 does not cause B-2010?