Economics at your fingertips  

The Stability Assumption in Tests of Causality between Money and Income

Helmut Lütkepohl ()

Empirical Economics, 1989, vol. 14, issue 2, 139-50

Abstract: This note argues that structural stability is an important condition for tests of Granger-causality. Despite this fact the standard causality tests are sometimes appiled to data for which structural stability cannot be assume a priori. Therefore, the stability of GNP/M1 systems of the U.S., Canada, and West Germany in the aftermath of the 1973/74 oil crisis is analyzed using formal statistical tests. Prediction tests are particularly useful for that purpose. The stability of the model for Canadian data is rejected whereas stability is not rejected for the U.S. and West Germany.

Date: 1989
References: Add references at CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.springer. ... rics/journal/181/PS2

Access Statistics for this article

Empirical Economics is currently edited by Robert M. Kunst, Arthur H.O. van Soest, Bertrand Candelon, Subal C. Kumbhakar and Joakim Westerlund

More articles in Empirical Economics from Springer
Bibliographic data for series maintained by Sonal Shukla ().

Page updated 2019-07-29
Handle: RePEc:spr:empeco:v:14:y:1989:i:2:p:139-50