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Distributional Granger Causality: Identification, Sequential Inference, and Adaptive Testing

Ayush Jha

arXiv 20 Jun 2026 · Econometrics

arXiv:2606.22230 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Predictive dependence in time series need not be confined to the conditional mean. Outside the Gaussian setting, causal content may arise through conditional scale, tail behavior, asymmetry, or other distributional features, implying that no single Granger-type test provides a complete characterization of predictive dependence. This paper develops a framework for distributional Granger causality based on a finite collection of channel-specific restrictions. Under suitable determinacy conditions, the channel menu is shown to be complete, yielding an identification result that links distributional Granger non-causality to a finite set of testable hypotheses. Building on this representation, we develop an adaptive sequential testing procedure that allocates inferential resources across channels while maintaining familywise error control through an alpha-investing mechanism. A policy-invariant validity theorem establishes finite-sample size control under arbitrary admissible selection rules, while an asymptotic efficiency theorem shows that a confidence-bound allocation rule achieves power equivalent to that of an infeasible oracle benchmark. The theoretical guarantees are derived from primitive mixing and moment conditions together with a circular-block permutation scheme.

Citation extraction

34
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51
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distinct cited
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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Foster, D. P. and Stine, R. A (2008) $ $-Investing: A Procedure for Sequential Control of Expected False Discoveries0.84333100%
2Aharoni, E. and Rosset, S (2014) Generalized $ $-Investing: Definitions, Optimality Results and Application to Public Databases0.64422100%
3Barnett, L. and Barrett, A. B. and Seth, A. K (2009) Granger Causality and Transfer Entropy Are Equivalent for Gaussian Variables0.64422100%
4Bouezmarni, T. and Rombouts, J. V. K. and Taamouti, A (2012) Nonparametric Copula-Based Test for Conditional Independence with Applications to Granger Causality0.64422100%
5Cheung, Y.-W. and Ng, L. K (1996) A Causality-in-Variance Test and Its Application to Financial Market Prices0.64422100%
6Diks, C. and Panchenko, V (2006) A New Statistic and Practical Guidelines for Nonparametric Granger Causality Testing0.64422100%
7Geweke, J (1982) Measurement of Linear Dependence and Feedback Between Multiple Time Series0.64422100%
8Geweke, J (1984) Measures of Conditional Linear Dependence and Feedback Between Time Series0.64422100%
9Granger, C. W. J (1969) Investigating Causal Relations by Econometric Models and Cross-Spectral Methods0.64422100%
10Hiemstra, C. and Jones, J. D (1994) Testing for Linear and Nonlinear Granger Causality in the Stock Price-Volume Relation0.64422100%

Showing the top 10 of 34 scored citations.