neoclassical growth model. Investment rates and total factor productivity start out low and rise over time. These model dynamics …

our key results to alternative data sets. -- China ; investment ; growth ; productivity ; capital market distortions …

of productive resources away from the most productive agents. Second, following an adverse productivity shock there is a … dynamic trade-off between the immediate fall in output, which is an efficient response to the productivity fall, and the fall … some inflation variability, even if the only shocks in the economy are productivity shocks. The optimal variability of …