Testing for Causality in Regional Econometric Models
- 1 December 1979
- journal article
- research article
- Published by SAGE Publications in International Regional Science Review
- Vol. 4 (2), 155-164
- https://doi.org/10.1177/016001767900400204
Abstract
One of the most common features of regional econometric models is the specification of national variables as exogenous to the regional model. Often these variables appear as distributed lags in the structural equations. Concepts and tests for statistical causality can be used to determine whether this procedure is appropriate in a particular case. This paper discusses these tests and illustrates them with an example from a model being developed of the state of Indiana. It is our view that such tests can be a useful step in the specification of a regional econometric model.Keywords
This publication has 4 references indexed in Scilit:
- Causality in temporal systemsJournal of Econometrics, 1977
- Checking the Independence of Two Covariance-Stationary Time Series: A Univariate Residual Cross-Correlation ApproachJournal of the American Statistical Association, 1976
- Distribution of Residual Autocorrelations in Autoregressive-Integrated Moving Average Time Series ModelsJournal of the American Statistical Association, 1970
- Investigating Causal Relations by Econometric Models and Cross-spectral MethodsEconometrica, 1969