Template-Type: ReDIF-Article 1.0
Author-Name:  Stephan B. Bruns, Christian Gross and David I. Stern
Title:  Is There Really Granger Causality Between Energy Use and Output?
Classification-JEL: F0
Volume:  Volume 35
Issue:  Number 4
Year:  2014
Abstract:  We carry out a meta-analysis of the very large literature on testing for Granger causality between energy use and economic output to determine if there is a genuine effect in this literature or whether the large number of apparently significant results is due to publication or misspecification bias. Our model extends the standard meta-regression model for detecting genuine effects in the presence of publication biases using the statistical power trace by controlling for the tendency to over-fit vector autoregression models in small samples. Granger causality tests in these over-fitted models have inflated type I errors. We cannot find a genuine causal effect in the literature as a whole. However, there is a robust genuine effect from output to energy use when energy prices are controlled for. 
Handle: RePEc:aen:journl:ej35-4-05
File-URL: http://www.iaee.org/en/publications/ejarticle.aspx?id=2579
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