To measure the economic effects of political movements in China a simple econo-metric model is constructed. Investment is determined by a central planner maximizing a multiperiod objective function. Political events are modeled by exogenous changes in the shocks to productivity and to investment...

We construct a structural econometric model to measure partially the economic effects of political movements in China.

This is a survey paper on five important developments in econometrics, with illustrative applications to economic policy formation in Taiwan, Mainland China and the United States.