Granger causality

Updated: Aug 20, 2021

Granger casuality

Causality in Granger’s sense, or Granger causality, does not imply true causality: the former refers to the concept of predictability, and can be tested using statistical tools; the latter refers to the concept of cause and effect, and is often postulated or implied by economic theory.

Reference: Oxford Press Dictonary of Economics, 5th edt.

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