Label—389

Pairwise Granger Causality Tests

Date: 10/20/97 Time: 15:31

Sample: 1946:1 1995:4

Lags: 4

For this example, we cannot reject the hypothesis that GDP does not Granger cause CS but we do reject the hypothesis that CS does not Granger cause GDP. Therefore it appears that Granger causality runs one-way from CS to GDP and not the other way.

If you want to run Granger causality tests with other exogenous variables (e.g. seasonal dummy variables or linear trends) or if you want to carry out likelihood ratio (LR) tests, run the test regressions directly using equation objects.

Label

This view displays the label information of the group. You can edit any of the field cells in the label view, except the Last Update cell which shows the date/time the group was last modified.

Name is the group name as it appears in the workfile; you can rename your group by editing this cell. If you fill in the Display Name cell, EViews will use this name in some of the tables and graphs of the group view. Unlike Names, Display Names may contain spaces and preserve capitalization (upper and lower case letters).

See Chapter 10, “EViews Databases”, on page 261 for a discussion of the label fields and their use in database searches.

Group Procedures Overview

There are three procedures available for groups.

•Make Equation… opens an Equation Specification dialog box with the first series in the group listed as the dependent variable and the remaining series as the regressors, including a constant term C. You can modify the specification as desired.

•Make Vector Autoregression… opens an Unrestricted Vector Autoregression dialog box, where all series in the group are listed as endogenous variables in the VAR. See Chapter 24, “Vector Autoregression and Error Correction Models”, on page 721 for a discussion of specifying and estimating VARs in EViews.

•Resample... performs resampling on all of the series in the group. A description of the resampling procedure is provided in “Resample” on page 334.

390—Chapter 12. Groups