Research Article
Simulation Analysis of the Impact of the Rural Financial Efficiency on the Rural Economic Fluctuations
@INPROCEEDINGS{10.1007/978-3-030-72795-6_31, author={Chenggang Li and Hongye Jia and Bing Yang}, title={Simulation Analysis of the Impact of the Rural Financial Efficiency on the Rural Economic Fluctuations}, proceedings={Simulation Tools and Techniques. 12th EAI International Conference, SIMUtools 2020, Guiyang, China, August 28-29, 2020, Proceedings, Part II}, proceedings_a={SIMUTOOLS PART 2}, year={2021}, month={4}, keywords={Simulation analysis Rural financial efficiency External shocks Rural economic fluctuations Dynamic Stochastic General Equilibrium model}, doi={10.1007/978-3-030-72795-6_31} }- Chenggang Li
Hongye Jia
Bing Yang
Year: 2021
Simulation Analysis of the Impact of the Rural Financial Efficiency on the Rural Economic Fluctuations
SIMUTOOLS PART 2
Springer
DOI: 10.1007/978-3-030-72795-6_31
Abstract
This paper constructs a Dynamic Stochastic General Equilibrium model (DSGE) which includes external shocks such as technology shock, cost push shock and monetary policy shock. The static and dynamic parameters of DSGE model are estimated by using calibration method and Bayesian estimation respectively, and the financial efficiency of China's rural areas is measured. Using impulse response analysis and social welfare loss of rural residents, we studied the impact of external shocks on rural economy under the level of rural financial efficiency. The results showed that: the current rural financial efficiency is 0.64; in response to external shocks, when the rural financial efficiency is 0.85, it can most effectively iron the fluctuations of the external shocks on the rural economy.
