Evidence for Nonlinear Asymmetric Causality in US Inflation, Metal, and Stock Returns

The purpose of this paper is to propose a version of causality testing that focuses on how the sign of the returns affects the causality results. We replace the traditional VAR specification used in the Granger causality test by a discrete-time bivariate noisy Mackey glass model. Our test reveals in...

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Bibliographic Details
Main Authors: D. Hristu-Varsakelis, C. Kyrtsou
Format: Article
Language:English
Published: Wiley 2008-01-01
Series:Discrete Dynamics in Nature and Society
Online Access:http://dx.doi.org/10.1155/2008/138547
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