Ayman
This is possible that both the variable can Granger cause each other.
Are the variables stationary at level?
Any standard econometric book would do, but you can try Walter Anders.
Hope it will help
Prakash
On Sat, Nov 3, 2012 at 8:47 AM, Prakash Singh <prakashbhu@gmail.com> wrote:
> Ayman
> This is possible that both the variable can Granger cause each other.
> Are the variables stationary at level?
>
> Any standard econometric book would do, but you can try Walter Anders.
>
> Hope it will help
>
>
> Prakash
>
>
> On Fri, Nov 2, 2012 at 3:42 AM, Ayman Farahat <ayman.farahat@yahoo.com>
> wrote:
>>
>>
>> Hello ;
>> I have a simple VAR model with two variables, x and y.
>> After i run the VAR model , i check for Granger casuality.
>> The results indicate that
>> X Granger causes Y.
>> Y Granger causes X
>> Does that make sense? is it possible for two variables to Granger cause
>> each other? Is that the same as saying that as simultaneity ?
>> Any references pointers greatly appreciated.
>>
>> thanks
>>
>> *
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>> * http://www.stata.com/support/faqs/resources/statalist-faq/
>> * http://www.ats.ucla.edu/stat/stata/
>
>
*
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