TITLE:
Distorted Factor Markets, Government Intervention, and Excess Capital Accumulation: The Case of China
AUTHORS:
Tao Gu
KEYWORDS:
Factor Markets, Government Intervention, Excess Capital Accumulation, Inefficiency of Economic Growth
JOURNAL NAME:
Theoretical Economics Letters,
Vol.4 No.9,
December
5,
2014
ABSTRACT: This paper develops a simple growth model
that embeds distorted factor markets and government intervention that achieves
high economic growth, low consumption, and high investment simultaneously. All
of these phenomena are consistent with Chinese macroeconomic data since the
1990s, implying the inefficiency of economic growth.