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Granger Causality in a VAR Model

2 messages · Ivan, Pfaff, Bernhard Dr.

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Dear Community,

I am new to R and have a question concerning the causality () test in
the vars package. I need to test whether, say, the variable y Granger
causes the variable x, given z as a control variable.

I estimated the VAR model as follows: >model<-VAR(cbind(x,y,z),p=2)

Then I did the following: >causality(model, cause="y"). I thing this
tests the Granger causality of y on the vector (x,z), though. How can
I implement the test for y causing x controlled for z? Thus, the
F-test comparing the two models M1:x~lagged(x)+lagged(z) and
M2:x~lagged(x)+lagged(y)+lagged(z)?

Thank you in advance.

Best Regards
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