I would agree that cointegration is currently considered to be somewhat more advanced and sophisticated than Granger tests. I would say that they are subject to most of the same limitations that Granger tests are. One thing that they avoid is that they are not labeled with a philosophically loaded and provocative name like "causality" which has caused more trouble and fuss over the Granger tests than they are worth. Barkley Rosser -----Original Message----- From: JayHecht at aol.com <JayHecht at aol.com> To: lbo-talk at lists.panix.com <lbo-talk at lists.panix.com> Date: Sunday, March 21, 1999 5:08 PM Subject: Re: Junk Econometrics [was School vouchers]
>In a message dated 3/18/99 11:28:20 AM Central Standard Time,
>dhenwood at panix.com writes:
>
><<
> I keep running into so-called Granger tests. Are these reliable, or
> controversial? >>
>You know Granger tests are easy to do and interesting, but the state of the
>art lies with co-integration and other fancy stuff
>
>Jason
>