Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/114491
Authors: 
Chang, Chun
Chen, Kaiji
Waggoner, Daniel F.
Zha, Tao
Year of Publication: 
2015
Series/Report no.: 
Working Paper, Federal Reserve Bank of Atlanta 2015-5
Abstract: 
We make four contributions in this paper. First, we provide a core of macroeconomic time series usable for systematic research on China. Second, we document, through various empirical methods, the robust findings about striking patterns of trend and cycle. Third, we build a theoretical model that accounts for these facts. Fourth, the model's mechanism and assumptions are corroborated by institutional details, disaggregated data, and banking time series, all of which are distinctive Chinese characteristics. We argue that preferential credit policy for promoting heavy industries accounts for the unusual cyclical patterns as well as the post-1990s economic transition featured by the persistently rising investment rate, the declining labor income share, and a growing foreign surplus. The departure of our theoretical model from standard ones offers a constructive framework for studying China's modern macroeconomy.
Subjects: 
reallocation
between-sector effect
total factor productivity growth
heavy versus light sectors
long-term versus short-term loans
labor share
lending frictions
incentive compatibility
JEL: 
F4
G1
E
Document Type: 
Working Paper

Files in This Item:
File
Size
649.48 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.