A DSGE model of China

Dai, Li, Minford, Patrick and Zhou, Peng 2014. A DSGE model of China. [Working Paper]. Cardiff Economics Working Papers, Cardiff: Cardiff University.

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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:	Monograph (Working Paper)
Date Type:	Publication
Status:	Published
Schools:	Business (Including Economics)
Subjects:	H Social Sciences > HB Economic Theory
Publisher:	Cardiff University
Date of First Compliant Deposit:	30 March 2016
Last Modified:	08 Oct 2015 09:42
URI:	https://orca.cardiff.ac.uk/id/eprint/78004

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