Abstract
In this paper we use a quantitative vintage growth model with embodied technology to explain the Chinese transition after 1978. We argue that many facts from the data fits better with this vintage approach than with a neoclassical framework. I will present a benchmark calibration of the model where the balanced growth path is calibrated to match the period before the 1978-reforms. By shocking the access to embodied technology we show that large parts of the transition can be explained by this simple shock.
