Numerical Analysis of Chinese Economy in an Small Scale RBC Model: 1996-2005

This paper uses a version of Hansen's (1985) real business cycle (RBC) model to mimic Chinese business cycle from 1996 to 2005. The comparison of simulation results and actual data implies that the model can reflect economic fluctuations. Quantitative analysis demonstrates that technology shock...

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Bibliographic Details
Published in2009 International Conference on Advanced Computer Control pp. 306 - 309
Main Authors Li Li, Yang Liu
Format Conference Proceeding
LanguageEnglish
Published IEEE 01.01.2009
Subjects
Economic Fluctuations
Educational institutions
Electric shock
Fluctuations
International trade
Labor resources
Macroeconomics
Microeconomics
Numerical analysis
Petroleum
Power generation economics
Real Business Cycle Model
Technology Shock
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ISBN9781424433308
076953516X
9780769535166
1424433304
DOI10.1109/ICACC.2009.137

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Summary:This paper uses a version of Hansen's (1985) real business cycle (RBC) model to mimic Chinese business cycle from 1996 to 2005. The comparison of simulation results and actual data implies that the model can reflect economic fluctuations. Quantitative analysis demonstrates that technology shock contributes to more than 90.3% of Chinese economic fluctuations, and RBC model is an ideal framework for Chinese economy policy analysis. The paper also suggests to incorporate a wider set of state variable, such as monetary, fiscal, and oil price shocks to improve the performance of the model.
ISBN:9781424433308
076953516X
9780769535166
1424433304
DOI:10.1109/ICACC.2009.137