In 1979 the United States and China established normal diplomatic relations, allowing me to visit China and study the Chinese economy. After doing so for thirty years since and advising the government of Taiwan in the 1960s and the 1970s and the government of the People’s Republic of China in...

Aggregate economic growth is studied using Cobb-Douglas production functions. For Taiwan, new capital stock and human capital data are constructed. We find a constant labor exponent of about 0.7, assuming constant returns; a constant rate of increase in total factor productivity (TFP) of about...

The model of Chow (1987) for inflation in China is applied to Taiwan. A cointegration relation linear in log price and log ratio of money supply to output is estimated. The change in this log ratio, lagged inflation and the lagged residual of the cointegration relation explain Taiwan’s...

In 1979 the United States and China established normal diplomatic relations, allowing me to visit China and study the Chinese economy. After doing so for thirty years since and advising the government of Taiwan in the 1960s and the 1970s and the government of the People’s Republic of China in...

The model of Chow (1987) for inflation in China is applied to explain inflation in Taiwan. A cointegration relation linear in the log of a price index and the log of the ratio of money supply to output is estimated. Inflation is explained by the change in this log ratio, lagged inflation and the...

Following Chow (1985 and 2010) and using annual data from 1951 to 2010 for Taiwan this paper estimates a consumption function based on the permanent income hypothesis and an investment function based on the accelerations principle. The data support the permanent income hypothesis Friedman (1957)...