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chapterNo Access
Chapter 28: Cointegrating Relationship and Granger Causal Analysis in Energy Economics — A Practical Guidance
- Zheng Fang and
- Thai-Ha Le
Handbook of Energy Finance30 Jan 2020
Preview Abstract
Cointegrating relationship and Granger causal analysis are used widely inempirical macroeconomics, especially in energy economics. This chapter aims to provide a survey of the development of the two widely used econometric methodologies with a practical guidance on issues that should be considered in implementation and software packages that are available for usage. An example which studies the existence of cointegrating and Granger causal relationship between energy consumption and economic growth is given to illustrate how such analysis can be carried out.

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