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