Block exogeneity test, Macroeconomics

Assignment Help:

From Tables 3A to 3F in the Appendix the results from VAR/Block Exogeneity Granger Causality Test are that the oil price variable does Granger cause both Inflation and interest rates, at the 95% level of significance (p<0.05). These results show that there is interaction between oil prices against inflation and interest rates. Oil prices help to predict inflation and interest rates at this level.

However, to enhance the understanding and improve the accuracy of the results, I performed pairwise Granger Causality tests, displayed in Table 4.3. This tests the causality for each pair of variables rather than the VAR as a whole. The results are similar to the VAR Granger test; however the pairwise test shows that at the 95% significance level, Oil does Granger cause GDP, in addition to interest rates and inflation.


Related Discussions:- Block exogeneity test

GDP, according to this example,how much value do each book contribute to th...

according to this example,how much value do each book contribute to the GDP? a) a forester chop down 100 trees and sell them @$100 to the paper and pulp factotry

Average cholesterol level, In a sample of 80 people who have had strokes, t...

In a sample of 80 people who have had strokes, the average cholesterol level was 250 with a standard deviation of 70. In order to test the hypothesis (at the 5% level of significan

Distinguish between static and dynamic gains from trade, Question 1: Cr...

Question 1: Critically analyse the costs of inflation. Which of these items is likely to have encouraged many governments in their adoption of inflation as public enemy number

Economists finance manager functional areas of MANAGEMENT, The primary func...

The primary functions of economists are to teach, contribute research and empirical findings and formulate policies. Most of the professional economists are associated with academi

Artificial intelligence and neural networks, Problem >> Explore the rel...

Problem >> Explore the relationship between Artificial intelligence and Neural networks. The systems which use this type of intelligence are known as artificial intelligent

Impact of an aging population on state, Evaluate the impact of an aging pop...

Evaluate the impact of an aging population on state and local government expenditures. Suggest strategies that government should take in dealing with this situation. Justify your r

Estimate the interest rate and minimize risk, 1. In December 1979 it was po...

1. In December 1979 it was possible to buy a January 1980 contract in gold at the New York Commodity Exchange for $487.50 per ounce and sell an October 1981 contract for $614.80 on

Business cycle, which turning point marks the end of an economic prosperity...

which turning point marks the end of an economic prosperity and the start pf contraction

Alternatives type of production, Production Alternatives Type of production...

Production Alternatives Type of production A B C D E Automobiles 0 2 4 6 8 Forklifts 30 27 21 12 0 If the economy is at point C, what is the (opportunity) cost of 2 more automobile

Firm''s total revenues, How much will your firm's total revenues (revenues ...

How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 2 percent?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd