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Econometric forecasting models
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Q1)
Q2)
We can see from the output that bizexp granger causes dl_rgdp_sg but dl_nodx does not.
Dl_rgdp_sg granger causes bizexp but dl_nodx does not.
dl_rgdp_sg and bizexp do not granger cause dl_nodx.
Q4)
Based on the results above we will use lag 1 and lag 2.
Cholesky ordering:
Ppi , dl_rgdp_sg and bizexp
PPI( Producer Price Index) is likely to affect dl_rgdp_sg( log difference od real GDP) and Bizexp(business expectations) contemporaneously.
Dl_rgdp_sg is likely to affect bizexp and not ppi contemporaneously
Bizexp is likely to affect neither contemporaneously.
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