This is a survey paper on five important developments in econometrics, with illustrative applications to economic policy formation in Taiwan, Mainland China and the United States.

To measure the economic effects of political movements in China a simple econo-metric model is constructed. Investment is determined by a central planner maximizing a multiperiod objective function. Political events are modeled by exogenous changes in the shocks to productivity and to investment...

We construct a structural econometric model to measure partially the economic effects of political movements in China.