Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/109048
Authors: 
Dai, Li
Minford, Patrick
Zhou, Peng
Year of Publication: 
2014
Series/Report no.: 
Cardiff Economics Working Papers E2014/4
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.
Subjects: 
China
DSGE
Bayesian Inference
Indirect Inference
JEL: 
C11
C15
C18
E27
Document Type: 
Working Paper

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