Extensions
A method for Granger causality has been developed that is not sensitive to deviations from the assumption that the error term is normally distributed. This method is especially useful in financial economics since many financial variables are non-normally distributed. Recently, asymmetric causality testing has been suggested in the literature in order to separate the causal impact of positive changes from the negative ones.
Read more about this topic: Granger Causality
Famous quotes containing the word extensions:
“The psychological umbilical cord is more difficult to cut than the real one. We experience our children as extensions of ourselves, and we feel as though their behavior is an expression of something within us...instead of an expression of something in them. We see in our children our own reflection, and when we don’t like what we see, we feel angry at the reflection.”
—Elaine Heffner (20th century)
“If we focus exclusively on teaching our children to read, write, spell, and count in their first years of life, we turn our homes into extensions of school and turn bringing up a child into an exercise in curriculum development. We should be parents first and teachers of academic skills second.”
—Neil Kurshan (20th century)