Author: Rashmi Sajwan

How to test time series multicollinearity in STATA?

By Rashmi Sajwan and Saptarshi Basu Roy Choudhury on October 24, 2018 2 Comments

The problem of multicollinearity arises when one explanatory variable in a multiple regression model highly correlates with one or more than one of other explanatory variables. It is a problem because it underestimates the statistical significance of an explanatory variable (Allen, 1997).


How to perform Granger causality test in STATA?

By Rashmi Sajwan and Priya Chetty on October 16, 2018 17 Comments

Applying Granger causality test in addition to cointegration test like Vector Autoregression (VAR) helps detect the direction of causality. It also helps to identify which variable acts as a determining factor for another variable. This article shows how to apply Granger causality test in STATA.

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