Analysis on China Business Cycle: A DSGE Approach.

This paper estimates and simulates a sticky-price dynamic stochastic general-equilibrium model with a financial accelerator, to find out the relative importance of sources inducing China economy fluctuation. The estimation and simulation results provide quantitative evidence that supply factors are the main source. The importance of demand side factors for output fluctuation is relatively minor, so authorities should pay more attention on supply capacity. [ABSTRACT FROM PUBLISHER]