AS-AD Curves: An Analysis Using the BQ and OLS Methods
Cihang Wan,
Yangyang Ji,
Youliang Luo and
Tianyu Zhang
MPRA Paper from University Library of Munich, Germany
Abstract:
The demand and supply shocks in the U.S. and China are analyzed using the Blanchard and Quah (BQ) and ordinary least squares (OLS) methods. For the U.S. data, the aggregate supply (AS) curve has a positive slope, whereas the aggregate demand (AD) curve has a negative slope. However, the two methods yield inverse results when data from China are analyzed. In the BQ method, the AS curve slope is negative and AD curve slope is positive, indicating a “slope puzzle.” In the OLS method, no “slope puzzle” is present.
Keywords: slope puzzle; BQ method; OLS (search for similar items in EconPapers)
JEL-codes: E32 (search for similar items in EconPapers)
Date: 2022-06-17
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/113437/1/MPRA_paper_113437.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/114203/1/MPRA_paper_113437.pdf revised version (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:113437
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().