Lessons from studying a simple macroeconomic model for China

Gregory C. Chow

Economics Letters, 2011, vol. 112, issue 3, 233-235

Abstract: Updating (Chow, 1985) and (Chow, 2010), this note finds that (1) the consumption equation continues to hold but the investment equation fails; (2) the investment equation holds if investment data for 2008 and 2009 are revised downward to reflect government expenditures as a part of the stimulus package during the world economic downturn; (3) small errors in one or two observations can reverse the sign of a significant regression coefficient in econometric practice.

Keywords: Consumption; Investment; China; Macroeconomy (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (6)

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