Sources Of Business Cycle Fluctuations: Comparing China And India
AbstractThis paper investigates the sources of business cycle fluctuations in China and India since 1978/81. Under the framework of a standard neoclassical open economy model with time-varying frictions (wedges), we study the relative importance of efficiency, labor, investment and government consumption wedges on the business cycle phenomenon. This enables us to contrast and compare the two countries’ experience in a way remarkably different from previous studies. The results for both China and India show that efficiency wedge is the main source of economic fluctuations, while the investment wedge and government consumption wedge played minor roles in generating business cycles.
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Bibliographic InfoPaper provided by China Economic Research Center, Stockholm School of Economics in its series Working Paper Series with number 2009-7.
Length: 23 pages
Date of creation: 01 May 2009
Date of revision:
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Postal: China, Economic Research Center, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden
Phone: +46-8-736 90 00
Fax: +46-8-31 81 86
Web page: http://www.hhs.se/CERC/
More information through EDIRC
Business cycle fluctuations; Business cycle accounting; China; India;
Find related papers by JEL classification:
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-07-11 (All new papers)
- NEP-CNA-2009-07-11 (China)
- NEP-CWA-2009-07-11 (Central & Western Asia)
- NEP-DGE-2009-07-11 (Dynamic General Equilibrium)
- NEP-MAC-2009-07-11 (Macroeconomics)
- NEP-TRA-2009-07-11 (Transition Economics)
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