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Extracting causal connections can advance interpretable AI and machine learning. Granger causality (GC) is a robust statistical method for estimating directed influences (DC) between signals. While GC has been widely applied to analysing…

Neurons and Cognition · Quantitative Biology 2024-08-06 Abdoreza Asadpour , KongFatt Wong-Lin

Identifying risk spillovers in financial markets is of great importance for assessing systemic risk and portfolio management. Granger causality in tail (or in risk) tests whether past extreme events of a time series help predicting future…

Risk Management · Quantitative Finance 2021-05-07 Piero Mazzarisi , Silvia Zaoli , Carlo Campajola , Fabrizio Lillo

This paper addresses the problem of inferring circulation of information between multiple stochastic processes. We discuss two possible frameworks in which the problem can be studied: directed information theory and Granger causality. The…

Information Theory · Computer Science 2011-11-02 Pierre-Olivier Amblard , Olivier J. J. Michel

The intention of this paper is to discuss the mathematical model of causality introduced by C.W.J. Granger in 1969. The Granger's model of causality has become well-known and often used in various econometric models describing causal…

Econometrics · Economics 2018-10-04 M. Bohdalová , M. Kalina , O. Nánásiová

We develop a multivariate functional autoregressive model (MFAR), which captures the cross-correlation among multiple functional time series and thus improves forecast accuracy. We estimate the parameters under the Bayesian dynamic linear…

Methodology · Statistics 2024-05-29 Rituparna Sen , Anandamayee Majumdar , Shubhangi Sikaria

It becomes increasingly popular to perform mediation analysis for complex data from sophisticated experimental studies. In this paper, we present Granger Mediation Analysis (GMA), a new framework for causal mediation analysis of multiple…

Methodology · Statistics 2017-09-18 Yi Zhao , Xi Luo

We discuss the use of multivariate Granger causality in presence of redundant variables: the application of the standard analysis, in this case, leads to under-estimation of causalities. Using the un-normalized version of the causality…

Quantitative Methods · Quantitative Biology 2015-05-14 L. Angelini , M. de Tommaso , D. Marinazzo , L. Nitti , M. Pellicoro , S. Stramaglia

Identifying the causal structure of systems with multiple dynamic elements is critical to several scientific disciplines. The conventional approach is to conduct statistical tests of causality, for example with Granger Causality, between…

Machine Learning · Statistics 2022-03-22 Jacek P. Dmochowski

The aim of this paper is to discuss a recent result which shows that probabilistic inference in the presence of (unknown) causal mechanisms can be tractable for models that have traditionally been viewed as intractable. This result was…

Artificial Intelligence · Computer Science 2022-02-08 Adnan Darwiche

This paper indicates causality as the tool that unifies the analysis of both activations and connectivity of brain areas, obtained with fMRI data. Causality analysis is commonly applied to study connectivity, so this work focuses on…

Methodology · Statistics 2011-02-25 Nevio Dubbini

Granger causality method analyzes the time series causalities without building a complex causality graph. However, the traditional Granger causality method assumes that the causalities lie between time series channels and remain constant,…

Methodology · Statistics 2020-06-16 Zhiheng Zhang , Wenbo Hu , Tian Tian , Jun Zhu

Granger causality has been used for the investigation of the inter-dependence structure of the underlying systems of multi-variate time series. In particular, the direct causal effects are commonly estimated by the conditional Granger…

Methodology · Statistics 2016-04-20 Elsa Siggiridou , Dimitris Kugiumtzis

As neuroscientists we want to understand how causal interactions or mechanisms within the brain give rise to perception, cognition, and behavior. It is typical to estimate interaction effects from measured activity using statistical…

Neurons and Cognition · Quantitative Biology 2020-10-26 David Marc Anton Mehler , Konrad Paul Kording

Instrumental variables have proven useful, in particular within the social sciences and economics, for making inference about the causal effect of a random variable, B, on another random variable, C, in the presence of unobserved…

Methodology · Statistics 2012-06-26 Roland R. Ramsahai

While correlation measures are used to discern statistical relationships between observed variables in almost all branches of data-driven scientific inquiry, what we are really interested in is the existence of causal dependence. Designing…

Machine Learning · Computer Science 2014-06-26 Ishanu Chattopadhyay

Explaining underlying causes or effects about events is a challenging but valuable task. We define a novel problem of generating explanations of a time series event by (1) searching cause and effect relationships of the time series with…

Computation and Language · Computer Science 2018-04-26 Dongyeop Kang , Varun Gangal , Ang Lu , Zheng Chen , Eduard Hovy

Determining and measuring cause-effect relationships is fundamental to most scientific studies of natural phenomena. The notion of causation is distinctly different from correlation which only looks at association of trends or patterns in…

Methodology · Statistics 2019-10-22 Aditi Kathpalia , Nithin Nagaraj

In this paper we test for Granger causality in high-dimensional vector autoregressive models (VARs) to disentangle and interpret the complex causal chains linking radiative forcings and global temperatures. By allowing for high…

Econometrics · Economics 2024-06-04 Marina Friedrich , Luca Margaritella , Stephan Smeekes

We study Granger causality in the context of wide-sense stationary time series, where our focus is on the topological aspects of the underlying causality graph. We establish sufficient conditions (in particular, we develop the notion of a…

Statistics Theory · Mathematics 2019-11-19 R. J. Kinnear , R. R. Mazumdar

Granger causality is a widely-used criterion for analyzing interactions in large-scale networks. As most physical interactions are inherently nonlinear, we consider the problem of inferring the existence of pairwise Granger causality…

Machine Learning · Computer Science 2020-01-15 Saurabh Khanna , Vincent Y. F. Tan