
Introductory Econometrics 4th Edition by Jeffrey Wooldridge
Edition 4ISBN: 978-0324660609
Introductory Econometrics 4th Edition by Jeffrey Wooldridge
Edition 4ISBN: 978-0324660609 Exercise 17
Let gMt be the annual growth in the money supply and let unemt be the unemployment rate. Assuming that unemt follows a stable AR(1) process, explain in detail how you would test whether gM Granger causes unem.
Explanation
If unem t follows a stable AR(1) process...
Introductory Econometrics 4th Edition by Jeffrey Wooldridge
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