New study challenges accuracy of economic model for Chinese economy
The article explores if a specific economic model fits the Chinese economy. Researchers used a Bayesian approach with Chinese economic data from 1978 to 2007. They tested the model using a method called Indirect Inference, comparing it to a different model. The results showed that the original model did not match the real data well, with a hybrid model performing better. This suggests that the original model may need adjustments to better represent the Chinese economy.