Abstract
This paper constructs a theoretical causal link between investment expansions from SOEs in 2008 with the new characteristics of business cycle after 2008 with the DSGE model. The author finds that SOEs’ investment against cycle will moderate the whole economy. At the same time, it will also lead to high inflation, crowd out private economy and reduce the aggregate consumption.
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© 2016 Springer Science+Business Media Singapore
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Tu, J. (2016). SOEs’ Investment and China’s New Characteristics of Business Cycle—Analysis with DSGE Model. In: Li, X., Xu, X. (eds) Proceedings of the Third International Forum on Decision Sciences. Uncertainty and Operations Research. Springer, Singapore. https://doi.org/10.1007/978-981-10-0209-0_6
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DOI: https://doi.org/10.1007/978-981-10-0209-0_6
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Publisher Name: Springer, Singapore
Print ISBN: 978-981-10-0208-3
Online ISBN: 978-981-10-0209-0
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