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Suppose you had data on stock price indices (X and Y) in two different countries . You are interested in causality issues and want to find out whether movements in stock prices in one country affect stock prices in another . How would you test for Granger causality? You would test for Granger causally using the coefficients of lags of variable X in the equation for X Then do the same for y You would find correlation between two stock prices You would perform impulse response analysis using 10-day forecasts of response to the shock of each vanable on another You would test for Granger causality using the coefficients of lags of variable X in coustion for Y Then test for bags of Yin equation for X Suppose you had data on stock price indices (X and Y) in two different countries . You are interested in causality issues and want to find out whether movements in stock prices in one country affect stock prices in another . How would you test for Granger causality? You would test for Granger causally using the coefficients of lags of variable X in the equation for X Then do the same for y You would find correlation between two stock prices You would perform impulse response analysis using 10-day forecasts of response to the shock of each vanable on another You would test for Granger causality using the coefficients of lags of variable X in coustion for Y Then test for bags of Yin equation for X

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