Analysis of Zhejiang Business Fluctuations with Dynamic Stochastic General Equilibrium Model
Zhejiang has experienced high economic growth as well as wild business cycle fluctuations since reforming and opening. According to the stylized facts, this paper estimates the dynamic stochastic general equilibrium model to summarize the Zhejiang business fluctuations. And we can draw the main conclusions from the quantitative analysis: technology advances and labor changes are the main drivers of Zhejiang business fluctuations, while government consumption and net exports had only ignorable impacts.
KeywordsRBC model Volatility HP filter Macroeconomic variable Cyclical fluctuation
This paper is supported by the foundation of Zhejiang Gongshang University and Humanities and Social Sciences Youth Fund of Ministry of Education (10YJC790091).
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