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Standard macro models cannot explain why real exchange rates are volatile and disconnected from macro aggregates. Recent research argues that models with persistent growth rate shocks and recursive preferences can solve that puzzle. I show that this result is highly sensitive to the structure of...
Persistent link: https://www.econbiz.de/10013044499
The problem is to evaluate the likelihood that a country will face a currency or balance of payments crisis over a given horizon. When is it rational for market participants to expect a depreciation of the currency? On the basis of considerable empirical studies we know that in both banking and...
Persistent link: https://www.econbiz.de/10013320946
The business cycles of advanced economies are synchronized. Standard macro models fail to explain that fact. This paper presents a simple model of a two-country, two-traded good, complete-financial-markets world in which country-specific productivity shocks generate business cycles that are...
Persistent link: https://www.econbiz.de/10014121891
This paper investigates the degree and the nature of exchange rate co-movements between the Renminbi and a set of seven East Asian currencies by estimating Markov switching models with regime-dependent correlations and time-varying transition probabilities. These models have several advantages....
Persistent link: https://www.econbiz.de/10012967868
This paper examines gender inequality in the context of structural transformation and rebalancing in China. We document … declining women's relative wages and labor force participation in China during the last two decades, despite rapid growth and … sector productivity can boost both gender equality and economic growth in China …
Persistent link: https://www.econbiz.de/10013300853
Our work contributes to the literature relating output structure and economic development by showing that growth gains from upgrading are not unconditional. Relying on data from a panel of Chinese cities, we show that the level of capabilities available to domestic firms operating in ordinary...
Persistent link: https://www.econbiz.de/10014000646
The purpose of this study is to empirically test the validity of Kaldor's laws of economic growth in China between 1978 … hypotheses on economic growth hold in China during the sample period. Second, it suggests the empirical findings as proving the … of the sources and processes of economic growth in China during the sample period. Finally, considering a striking …
Persistent link: https://www.econbiz.de/10003732733
Korea's experience implies that the People's Republic of China's potential growth rates are likely to slow in the coming … People's Republic of China needs to upgrade its institutional quality and improve productivity, particularly in its services …
Persistent link: https://www.econbiz.de/10011471510
This study explores China's economic growth performance and prospects in global and Asian comparative perspectives …. Using a general framework of cross-country analysis, the study identifies and discusses major factors underlying China … industry-level data to assess structural changes and sectoral growth in the Chinese economy. China's low initial per capita …
Persistent link: https://www.econbiz.de/10012991388
Korea's experience implies that the People's Republic of China's potential growth rates are likely to slow in the coming … People's Republic of China needs to upgrade its institutional quality and improve productivity, particularly in its services …
Persistent link: https://www.econbiz.de/10012992256