Biometrical Letters Vol. 55(1), 2018, pp. 45-48
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THE PERFECT REGRESSION AND CAUSALITY TEST: A SOLUTION TO REGRESSION PROBLEMS Moawia Alghalith Economics Dept., UWI, St Augustine, Trinidad and Tobago e-mail: malghalith@gmail.com |
We introduce a method that eliminates the specification error and spurious relationships in regression. In addition, we introduce a test of strong causality. Furthermore, hypothesis testing (inference) becomes almost unneeded. Moreover, this method virtually resolves error problems such as heteroscedasticity, autocorrelation, non-stationarity and endogeneity.
spurious regression, strong causality, specification error
