China Economic Research Center Working Paper Series
No 2009-7:
SOURCES OF BUSINESS CYCLE FLUCTUATIONS: COMPARING CHINA AND INDIA
Christer Ljungwall ()
and Xu Gao
Abstract: This paper investigates the sources of business cycle
fluctuations in China and India since 1978/81. Under the framework of a
standard neoclassical open economy model with time-varying frictions
(wedges), we study the relative importance of efficiency, labor, investment
and government consumption wedges on the business cycle phenomenon. This
enables us to contrast and compare the two countries’ experience in a way
remarkably different from previous studies. The results for both China and
India show that efficiency wedge is the main source of economic
fluctuations, while the investment wedge and government consumption wedge
played minor roles in generating business cycles.
Keywords: Business cycle fluctuations; Business cycle accounting; China; India; (follow links to similar papers)
JEL-Codes: E32; E37; O47; O53; (follow links to similar papers)
23 pages, May 1, 2009
Before downloading any of the electronic versions below
you should read our statement on
copyright.
Download GhostScript
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
hacerc2009-007.pdf 
(374kB)
Download Statistics
Questions (including download problems) about the papers in this series should be directed to Nanhee Lee ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Programing by
Design by Joachim Ekebom
