A DSGE Model of China

A. Patrick Minford, Li Dai and Peng Zhou

No 10238, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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.

Keywords: Bayesian inference; China; Dsge; indirect inference (search for similar items in EconPapers)
JEL-codes: C11 C15 C18 E27 (search for similar items in EconPapers)
Date: 2014-11
New Economics Papers: this item is included in nep-dge, nep-mac and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Journal Article: A DSGE model of China (2015)
Working Paper: A DSGE Model of China (2014)
Working Paper: A DSGE Model of China (2014)
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