Lan, Yuexing; Sylwester, Kevin - In: Economics Bulletin 31 (2011) 1, pp. 662-678
This paper examines how similar shocks are across Chinese regions from 1978 to 2009. Using a SVAR with GDP growth and inflation as dependent variables, we identify the model assuming demand shocks have no long-run effect upon output. We find that both supply and demand shocks are more correlated...