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Granger Causal Test

Posted: Fri Oct 15, 2010 11:17 pm
by zorba
Hi,

I just joined and testing the water with the following question:

Am I correct in saying that A Granger causes B and that B does not Granger Cause A given the following results. Using Eviews for the Granger Causal Test, I derived the following :

A does not Granger Cause B F = 5.6 Prob = 0.015
B does not Granger Cause A F = 1.3 Prob = 0.266

Re: Granger Causal Test

Posted: Sun Oct 17, 2010 9:45 am
by jiya
yes u r correct.....but do check stationary property of your data before relying on this result.