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Important laws governing China's macro-economy

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  • Chow, Gregory C

Abstract

This paper presents economic laws that are valid for China's macro-economy from 1952 to 2013 in spite of the many institutional changes during this period. The laws include a consumption function based on the adaptive expectations hypothesis of Friedman (1957) or the rational expectations hypothesis of Hall (1978), an investment function derived from the accelerations principle and the roles of government expenditure and money supply. It extends the analyses of Chow (1985, 2010 and 2011) to cover longer periods and study additional issues.

Suggested Citation

  • Chow, Gregory C, 2016. "Important laws governing China's macro-economy," Journal of Comparative Economics, Elsevier, vol. 44(2), pages 289-294.
    • Handle: RePEc:eee:jcecon:v:44:y:2016:i:2:p:289-294
    DOI: 10.1016/j.jce.2015.10.011
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    References listed on IDEAS

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    1. Hall, Robert E, 1978. "Stochastic Implications of the Life Cycle-Permanent Income Hypothesis: Theory and Evidence," Journal of Political Economy, University of Chicago Press, vol. 86(6), pages 971-987, December.
    2. Milton Friedman, 1957. "A Theory of the Consumption Function," NBER Books, National Bureau of Economic Research, Inc, number frie57-1, February.
    3. Chun Chang & Kaiji Chen & Daniel F. Waggoner & Tao Zha, 2016. "Trends and Cycles in China's Macroeconomy," NBER Macroeconomics Annual, University of Chicago Press, vol. 30(1), pages 1-84.
    4. Chow, Gregory C., 2010. "Note on a model of Chinese national income determination," Economics Letters, Elsevier, vol. 106(3), pages 195-196, March.
    5. Milton Friedman, 1957. "Introduction to "A Theory of the Consumption Function"," NBER Chapters, in: A Theory of the Consumption Function, pages 1-6, National Bureau of Economic Research, Inc.
    6. Chow, Gregory C, 1985. "A Model of Chinese National Income Determination," Journal of Political Economy, University of Chicago Press, vol. 93(4), pages 782-792, August.
    7. Chow, Gregory C., 2011. "Lessons from studying a simple macroeconomic model for China," Economics Letters, Elsevier, vol. 112(3), pages 233-235, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Consumption; Investment; China; Macro-economics; Government expenditure; Money supply;
    All these keywords.

    JEL classification:

    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
    • P3 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions

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