Series: IMF Working Papers
Author(s): Jahangir Aziz
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 December 2006
Keywords: Business cycle accounting, rebalancing growth, financial distortions, gnp, cost of capital, capital income, growth model, capital formation, Economywide Country Studies: Asia including Middle East,
This paper uses the standard one-sector neoclassical growth model to investigate why China's consumption has been low and investment high. It finds that the low cost of capital has been quantitatively an important...