*Source: author’s own Eviews calculations
From the significant coefficients of Wald test following policy
implications in nutshell;
- Though ELEC (-2) doesn’t individually influence FGPD but along with
its forward value of ELEC (-1) it jointly influences FGPD.
- Producer expectations of previous two years jointly influence consumer
expectations of the current year.
- Electricity consumption is jointly influenced by production of the
previous years i.e. more income leads more electrification.
- Irrigation is highly dependent upon the electricity consumption of
previous years.
Diagnostic Checks of Short Run Causality:
Here is the diagnostic check of the model that shows the model under
consideration is a robust model and the policy suggestions of the model
can be used practically.