Me:

> Put differently, who was responding to whom and how are we going to
> find an answer to this question by econometric means?

By the way Jim, I was expecting a response such as use SUR (Seemingly
Unrelated Regressions) or 2SLS (Two Stage Least Squares) or maybe 3SLS
if you want to make the model even nicer looking, find some IVs
(Instrumental Variables), use many other so-called "controls
variables"  and the like. Your response shows that you have not been
dealing with econometrics for the last 30 years, as you said.

But, suppose that you did everything there is to do and reached to the
conclusion that yeah, both parties were responding to each other and
more.

Then what happens?

Best,
Sabri
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