We document a substantial dispersion of interest margins charged by commercial banks across Chinese provinces. As our empirical study provides evidence that resource costs are the primary drivers of Chinese bank interest margins, we build a parsimonious dynamic stochastic general equilibrium...

This paper builds a dynamic multisector model to investigate the importance of sectoral productivity shocks and production linkages in accounting for business cycles in China. With structural parameters and sectoral productivity shocks calibrated to 46 industrial sectors, the model simulation...