This article suggests a new approach to approximating moments for nonlinear DSGE models. This approach is fast and sufficiently accurate to estimate nonlinear DSGE models. A small financial DSGE model is repeatedly estimated by several modifications of the suggested approach. Approximations of...

In this paper, we examine the effects of foreign productivity shocks on monetary policy in a symmetric open economy. Our two-country model incorporates the New Keynesian features of price stickiness and monopolistic competition based on the cost channel of Ravenna and Walsh (2006). In...

Many claim that China will soon overtake the US. I argue that this claim is based on a misuse of statistics. The International Comparison Program (ICP) price data is necessary to compare living standards, since a dollar¡¯s worth of yuan buys more in China than a dollar buys in the US. But the...

Existing literature is characterized by certain deficiencies in measuring housing bubbles in China. By extending the analytical framework of Black et al. (2006) to a spatial panel VAR structure, this paper measures housing bubbles in China¡¯s 35 major cities from 1999Q2 to 2012Q3 and analyzes...

This paper proposes a theoretical framework based on new household economic theories. A dataset from the 2006 China Health and Nutrition Survey (CHNS) is used. Given heterogeneity in major family members¡¯ jobs, the effect of non-labor income on household time allocation is discussed under two...