The Link between Macroeconomic Adjustment and Sectoral Output in Post-Reform China

Posted: 24 Mar 2006

See all articles by Andrew Feltenstein

Andrew Feltenstein

Georgia State University - Department of Economics

Jiming Ha

International Monetary Fund (IMF)

Abstract

We construct a two-part model of the Chinese economy. The first part consists of a money supply equation, a real money demand equation, and a savings equation. The second part comprises a set of sectoral equations. The model estimated is then used to generate a dynamic simulation of the paths of real national income, the aggregate price level, sectoral output, and sectoral prices. The model tracks quite well within sample, thus indicating that it may be used to analyze the future effects of policy changes. We therefore carry out counterfactual policy simulations based on monetary changes.

Keywords: China, Macro-adjustment, simulation

JEL Classification: E63, 021, P21

Suggested Citation

Feltenstein, Andrew and Ha, Jiming, The Link between Macroeconomic Adjustment and Sectoral Output in Post-Reform China. China Economic Review, Vol. 3, No. 2, pp. 109-124, Autumn 1992, Available at SSRN: https://ssrn.com/abstract=890226

Andrew Feltenstein (Contact Author)

Georgia State University - Department of Economics ( email )

P.O. Box 3992
Atlanta, GA 30302-3992
United States
404-4130093 (Phone)

Jiming Ha

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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