Question: Assess whether there is Granger-causality between both series. Construct the appropriate statistical tests, choose the size of the test, and explain your decision.

Assess whether there is Granger-causality between both series. Construct the appropriate statistical tests, choose the size of the test, and explain your decision.

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To test for Grangercausality we choose the asymptotic chisquared test where SSR 0 is the sum of squa... View full answer

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