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QUESTION 2 Suppose you had data on stock price indices in two different countries. You...

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QUESTION 2 Suppose you had data on stock price indices in two different countries. You are interested in causality issues and want to find out whether movements in stock prices in one country affect stock prices in another. Describe all the steps you would go through (i.e. what models you would estimate and what testing procedures you would use) to investigate your question of interest. QUESTION 2 Suppose you had data on stock price indices in two different countries. You are interested in causality issues and want to find out whether movements in stock prices in one country affect stock prices in another. Describe all the steps you would go through (i.e. what models you would estimate and what testing procedures you would use) to investigate your question of interest

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