IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-10-00174.html
   My bibliography  Save this article

Causal order between money, income and price through graph theoretic approach for Pakistan

Author

Listed:
  • Zahid Asghar

    (Quaid-i-Azam University, Islamabad)

  • Nighat Jahandad

    (Quaid-i-Azam University, Islamabad)

Abstract

We investigate the causal relationship between money, income and price for Pakistan using quarterly data from 1971-2003. We find that both money supply and prices cause income thus verifying the monetarists' point of view. Taking account of time series properties the methodology applies recent developments in graph theoretical causal search algorithms developed by Pearl, Glymour, Spirtes(1993) and Pearl(2000). One main merit of graph theoretic approach is that it overcomes problems of over identification in VAR models, Choleski decomposition on the other hand can only be applied for just an arbitrarily identified VAR models.

Suggested Citation

  • Zahid Asghar & Nighat Jahandad, 2010. "Causal order between money, income and price through graph theoretic approach for Pakistan," Economics Bulletin, AccessEcon, vol. 30(3), pages 2515-2523.
    • Handle: RePEc:ebl:ecbull:eb-10-00174
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2010/Volume30/EB-10-V30-I3-P231.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fazal, Rizwan & Rehman, Syed Aziz Ur & Rehman, Atiq Ur & Bhatti, Muhammad Ishaq & Hussain, Anwar, 2021. "Energy-environment-economy causal nexus in Pakistan: A graph theoretic approach," Energy, Elsevier, vol. 214(C).
    2. Fazal, Rizwan & Bhatti, M. Ishaq & Rehman, Atiq Ur, 2022. "Causality Analysis: The study of Size and Power based on riz-PC Algorithm of Graph Theoretic Approach," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    3. Asma Awan & Hafiz Khalil Ahmad & Altaf Hussain & Muhammad Yousuf Khan Marri, 2021. "Prices, Money Supply and Output Nexus in Pakistan – A Macro Econometric Model," iRASD Journal of Economics, International Research Alliance for Sustainable Development (iRASD), vol. 3(2), pages 38-77, September.

    More about this item

    Keywords

    Causality; Choleski Decomposition; Structural VAR; Graph theoretic models;
    All these keywords.

    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General
    • C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-10-00174. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.