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  • Interpretation on the Granger Causality

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    I am trying to characterise temporal sequence of influences in a VAR and wanted to use the Granger Causality. Based on these results, am I right to say that the change in oil prices (Dlop) do not granger cause GDP growth (Dlrgdp) but granger causes the change in exchange rates (Dlexc) at the 5% significance level and granger causes the change in inflation rates (Dinf) at the 10% level. Does this interpretation make sense?

  • #2
    You'll increase your chances of a useful answer by following the FAQ on asking questions. Posting pictures is not encouraged.

    I don't do Granger causality work, so I can't help you on the substance, but proper posting might increase your chances someone who does Granger causality can help you.

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