Tuesday, December 9, 2008

Chickens, Eggs, and Studying for Finals...

Today was my very last day of econometrics class.  In an unimaginable display of geekalicious splendor, the professor (renowned econometrician Ron Oaxaca) gave the following notes as the grand finale of the course.  Apparently, US data on chicken and egg production shows definitively that the there is unidirectional Granger causality for eggs to chickens.

I was so impressed that I ordered Mario to make sure the board was not erased as I went to my desk to get my camera (which for some strange reason I had the feeling I should put in my purse this morning, go figure).  Later, I learned that this led to a most interesting conversation about the relationship between pirates and global warming.

Here you go, the proof that eggs Granger cause chickens, as shown by Thurman and Fisher, 1988.