choice-metrics.com

Dear Prof.

Can the Granger causality test be used to test causal relations between the dependent (choice variable) and independent variables(other than the attributes)? For instance, in my study I model preferences to animal welfare. How then can I establish causality: Do my preferences influence my consumption behaviour or the other way around?

Maria

In my understanding, causality cannot be established or tested in regular choice models.
Granger causality is specific to time series data, which is different from typical choice data. Maybe if you somehow collect "dynamic" choice data it is possible?

Michiel