Credit Market Imperfection and Sectoral Asymmetry of Chinese Business Cycle
| Autor: | Yuanyan Sophia Zhang |
|---|---|
| Rok vydání: | 2011 |
| Předmět: |
Stylized fact
media_common.quotation_subject Net worth Monetary economics China investment exchange rate credit market business cycle net worth Credit Market Imperfection Secoral Asymmetry Macroeconomics And Monetary Economics Macroeconomic Aspects Of International Trade And Finance Asymmetry ComputingMilieux_GENERAL Exchange rate Economics Business cycle General Earth and Planetary Sciences Bond market Volatility (finance) General Environmental Science media_common |
| Zdroj: | IMF Working Papers. 11:1 |
| ISSN: | 1018-5941 |
| DOI: | 10.5089/9781455262410.001 |
| Popis: | This paper analyzes the role of credit market imperfection and sectoral asymmetry as a means through which shocks to the real economy are propagated and amplified. Drawing on firm-level data to calibrate the model, our simulations capture two key stylized facts of the Chinese economy: that credit constraints are more binding in nontradable sectors than in tradable industries and that output volatility is much greater in China than in industrial economies. We find that the driving force behind our simulation results is strongly related to the non-uniform nature of credit market imperfections in China and their implications for resource allocation and the way in which the economy reacts to shocks. Correctly capturing these macro-financial interactions are essential to understand the dynamic behavior of the Chinese economy. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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