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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