DOP vs IOP Flashcards | Quizlet

                                               
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Free Flashcards about DOP & IOP

                                               
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  • What is the difference between IOP and DOP?
  • As shown, the difference between the two sets of results is negligible. This means that when there is a shock of IOP, the responses of the Chinese economic system are barely affected by the presence of DOP (and hence the mechanism).
  • Will DOP follow the rise of IOP?
  • Therefore DOP will follow the rise of IOP even if this may lead to higher inflation in China. The larger effect on PPI just shows what the alternative implementation can imply for the effect of DOP. However, we also note that this larger effect of DOP shock on PPI is still small and over a short horizon compared to that of IOP shock on PPI.
  • Is the relationship between DOP and IOP unidirectional?
  • This dictates that the relationship between the two prices is bivariate and unidirectional (from IOP to DOP). Given this, we consider the Autoregressive Distributed Lag (ARDL) model to study the movement of DOP in relation to IOP, with a focus on possible asymmetric response of DOP.
  • What is IOP shock?
  • 1. IOP, PPI, INV, IVA, and M1 stand for international oil price, producer price index, investment, industrial value added, and M1 money supply, respectively. 2. IOP shock is given in one standard deviation of the estimated structural error, i.e., 0.065 (6.5% of change). The responses are interpreted similarly. 3.
  • How does the shock of IOP affect the Chinese economy?
  • This means that when there is a shock of IOP, the responses of the Chinese economic system are barely affected by the presence of DOP (and hence the mechanism). Further, we conduct counterfactual analysis under the active identification scheme based on sample one, and under the passive identification scheme based two subsamples.
  • What is DOP shock?
  • DOP shock is given in one standard deviation of its structural shock 0.014. Given that DOP is measured in log difference (growth rate), this number means 1.4% of change. 3.