EconPapers    
Economics at your fingertips  
 

Time Aggregation and the Contradictions with Causal Relationships: Can Economic Theory Come to the Rescue?

Rangan Gupta () and Kibii Komen ()
Additional contact information
Kibii Komen: Department of Economics, University of Pretoria

No 200802, Working Papers from University of Pretoria, Department of Economics

Abstract: The literature on causality takes contradictory stands regarding the direction of causal relationships based on whether one uses temporally aggregated or systematically sampled data. Using the relationship between a nominal target and the instrument used to achieve it, as an example, we show that one can fall back upon the data in itself, and analyse it from the perspective of economic theory, not only as a source of second opinion to econometric theories and Monte Carlo simulations, but also to draw proper conclusions regarding the form of the causal relationship that might be actually existing in the data.

Keywords: Temporal Aggregation; Systematic Sampling; Granger Causality; Cointegration; Error Correction Models (search for similar items in EconPapers)
JEL-codes: C15 C32 C43 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2008-02
New Economics Papers: this item is included in nep-ecm and nep-hpe
References: Add references at CitEc
Citations: View citations in EconPapers (4) 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: https://EconPapers.repec.org/RePEc:pre:wpaper:200802

Access Statistics for this paper

More papers in Working Papers from University of Pretoria, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Rangan Gupta ().

 
Page updated 2021-01-18
Handle: RePEc:pre:wpaper:200802