Price deflators in Mainland China
Hildebrandt, Gregory G.
Sovereign, Michael G.
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This thesis applies the theory of price indexes to the analysis of price changes in the People's Republic of China. Economic and political trends that may have contributed to the extreme inflation in China in the late 198Os are examined. The theory of price indexes is discussed. Several regression models are constructed to examine the relationship between inflation and several other measured economic factors in China. The model results indicate a relationship between the categories of economic goods and the price index. No similar relationships exist between coastal versus interior region or output/income level and the price level. Food was the economic category most strongly associated with the increases in price. This suggests that increases in the price of food are a major cause of inflation in China.
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