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China's macroeconomic volatility -- How important is the business cycle?

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Listed author(s):
  • Laurenceson, James
  • Rodgers, Danielle

Abstract

The existing literature that discusses China's macroeconomic volatility during the reform period does so with overwhelming reference to the business cycle. However, the business cycle is only a subset of macroeconomic volatility that occurs within a particular frequency band. In this paper we decompose various macroeconomic series by frequency and find that much volatility occurs at lower than business cycle frequencies. This suggests that it is necessary to look beyond the construct of the business cycle in order to understand the nature of China's macroeconomic volatility, and beyond the usual demand side explanations in the discussion of causes.

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File URL: http://www.sciencedirect.com/science/article/pii/S1043-951X(10)00007-6
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Article provided by Elsevier in its journal China Economic Review.

Volume (Year): 21 (2010)
Issue (Month): 2 (June)
Pages: 324-333

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Handle: RePEc:eee:chieco:v:21:y:2010:i:2:p:324-333
Contact details of provider: Web page: http://www.elsevier.com/locate/chieco

Keywords: Business fluctuations Cycles;

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Cited by:

  1. Guo, Shen & Liu, Lezheng & Zhao, Yan, 2015. "The business cycle implications of land financing in China," Economic Modelling, Elsevier, vol. 46(C), pages 225-237.
  2. Chen, Yen-Hsiao & Quan, Lianfeng & Liu, Yang, 2013. "An empirical investigation on the temporal properties of China's GDP," China Economic Review, Elsevier, vol. 27(C), pages 69-81.
  3. Badarau-Semenescu, Cristina & Ndiaye, Cheikh Tidiane, 2010. "Politique économique et transmission des chocs dans la zone euro," L'Actualité Economique, Société Canadienne de Science Economique, vol. 86(1), pages 35-77, mars.
  4. Yueqing Jia, 2011. "A New Look at China’s Output Fluctuations: Quarterly GDP Estimation with an Unobserved Components Approach," Working Papers 2011-006, The George Washington University, Department of Economics, Research Program on Forecasting.
  5. He, Qing & Chen, Haiqiang, 2014. "Recent macroeconomic stability in China," China Economic Review, Elsevier, vol. 30(C), pages 505-519.

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