Question

Hello, I am an international student. I am struggling with finding information about one specific person.

His name is Clive Granger. He was awarded the Nobel Prize in Economic Sciences.

I want to know three things about him.

1. What economic theories and analysis that he developed for awarding the Nobel Prize.

2. How it (theories and analysis) has contributed to the human understanding of various phenomena.

3. Some specific examples of how he has been applied his theories in various areas.

Your comments will be very helpful to me. Thank you.

Answer 1

Clive Granger

(1) He made the contribution in econometrics, especially in time series data. The theories are,

• Gabor–Granger method
• Granger causality

(2) This has helped the econometricians who are studying or analyzing the times series data. With the help of these theories, one can find many observations for time series data of variables. Like, Granger causality helps us to determine whether one time series is useful to determine another.

(3) His theories can be applied in econometrics. The econometricians can use these theories in their research framework. For example: Granger causality can be used to detect causality among stock prices and economic growth. If stock prices are increasing, the economic growth is also increasing and vice versa.