Long and short run causality analysis in the money demand model for Poland
DOI:
https://doi.org/10.12775/AUNC_ECON.2009.024Keywords
Granger and Hsiao concepts of causality, testing for causality in the long and short run, money demand model for PolandAbstract
The purpose of the article is to analyse the Granger causality problem in the long as well as short run. The straightforward relation of the mentioned concept with direct and indirect cause ideas has beaen emphasized. The testing procedure proposed in Dufour et al. (2003) was used to search for causality in the long and short run in the quarterly model of demand for money inPolandin 1997–2007. The model was constructed on the basis of cointegration concept. Causality analysis shows that the empirical model remains in agreement with economic theory.
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