Abstract:
The close relation between government and the state-owned enterprises, and government financing platform expansion, significantly strengthen the non-Ricardo character of China's fiscal policy, which makes the present value budget equation an equilibrium condition of macro economy. We conclude that stock price negatively correlates with the change of the general price, and it can also be deduced that CPI changes lead to PPI. Based on structural change test on the data from January 1997 to March 2015, we find that the relationship of the stock price and the general price in April 2002~January 2005, and July 2009~March 2012 supports our theory description.
孙力军, 盛文军, 段军山. 中国股价与物价的关系研究——基于FTPL的理论视角和结构突变的实证检验[J]. 金融研究, 2016, 428(2): 145-153.
SUN Lijun, SHENG Wenjun, DUAN Junshan. Relationship of China’s Stock Price and General Price: Theoretical and Empirical Analysis Based on FTPL Theory and Structural Change Test. Journal of Financial Research, 2016, 428(2): 145-153.
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