Consider the Following Bivariate VAR(2): Which of the Following $\alpha$

question 1

Multiple Choice

Consider the following bivariate VAR(2) : Which of the following coefficient significances are required to be able to say that y₁ Granger-causes y₂ but not the other way around?

• A)\(\alpha\)₁₃ and \(\alpha\)₁₄ significant; \(\alpha\)₂₁ and \(\alpha\)₂₂ not significant
• B) \(\alpha\)₂₁ and \(\alpha\)₂₂ significant; \(\alpha\)₁₃ and \(\alpha\)₁₄ not significant
• C) \(\alpha\)₂₁ and \(\alpha\)₂₃ significant; \(\alpha\)₁₁ and \(\alpha\)₁₃ not significant
• D) \(\alpha\)₁₁ and \(\alpha\)₁₃ significant; \(\alpha\)₂₁ and \(\alpha\)₂₃ not significant

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Definitions:

Fibula

A long, slender bone located on the lateral side of the tibia in the lower leg.

Metatarsals

The five long bones in the foot that connect the ankle bones to those of the toes, playing a key role in mobility and weight distribution.

Tibia

The larger and stronger of the two bones in the lower leg, commonly referred to as the shin bone.

Talus

A bone in the ankle that sits between the heel bone and the two bones of the lower leg, allowing for ankle movement.