BB- Seminar: Yikai Wang presents "The Effects of Chinese Economic Stimulus Program in 2008"

Yikai Wang (UiO) present  "The Effects of Chinese Economic Stimulus Program in 2008" which is jointly work with Fabrizio Zilibotti (UZH) and Kjetil Storesletten (UiO)

Abstract

In response to the Global Financial Crisis in 2008, the Chinese government announced a 4 trillion RMB stimulus package to increase the investment in infrastructure and social welfare. The investment concentrates in state firms and the construction sector. How does this stimulus package affect private firms and other sectors, and the aggregate economy? In this paper, we use a two-sector growth model answer this question, capturing the state-private dichotomy. We try to explain a couple of phenomena after 2008 in China: increasing wage, stop of privatization, decreasing foreign surplus, and increasing debt.

Organizer

Macroinequality
Published Dec. 8, 2016 2:26 PM - Last modified Dec. 9, 2016 1:19 PM