A DSGE model of China

Li, Dai, Minford, Anthony Patrick Leslie ORCID: https://orcid.org/0000-0003-2499-935X and Zhou, Peng ORCID: https://orcid.org/0000-0002-4310-9474 2015. A DSGE model of China. Applied Economics 47 (59) , pp. 6438-6460. 10.1080/00036846.2015.1071477

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Abstract

We use available methods for testing macro models to evaluate a model of China over the period from Deng Xiaoping’s reforms up until the crisis period. Bayesian ranking methods are heavily influenced by controversial priors on the degree of price/wage rigidity. When the overall models are tested by Likelihood or Indirect Inference methods, the New Keynesian model is rejected in favour of one with a fair-sized competitive product market sector. This model behaves quite a lot more ‘flexibly’ than the New Keynesian.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Schools > Business (Including Economics)
Subjects:	D History General and Old World > DS Asia H Social Sciences > HB Economic Theory
Uncontrolled Keywords:	China, DSGE, Bayesian Inference, Indirect Inference
Publisher:	Routledge
ISSN:	0003-6846
Date of First Compliant Deposit:	30 March 2016
Date of Acceptance:	2 July 2015
Last Modified:	02 Dec 2024 18:06
URI:	https://orca.cardiff.ac.uk/id/eprint/75350

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