Affiliations: [a] Department of Public Administration, International Business School, Shaanxi Normal University, Xi’an, China
| [b] Department of Public Administration, Economics and Management School, Tongji University, Shanghai, China
Correspondence:
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Corresponding author: Shurong Han, Department of Public Administration, International Business School, Shaanxi Normal University, 620 Weat Chang’an Avenue, Xi’an, 710119 China. E-mail: Shurong.han@snnu.edu.cn.
Abstract: The study analysed the medical imaging technology business cycle from 1981 to 2009 and found that the volatility of consumption in Chinese medical imaging business was higher than that of the developed countries. The volatility of gross domestic product (GDP) and the correlation between consumption and GDP is also higher than that of the developed countries. Prior to the early 1990s the volatility of consumption is even higher than GDP. This fact makes it difficult to explain the volatile market using the standard one sector real economic cycle (REC) model. Contrary to the other domestic studies, this study considers a three-sector dynamical stochastic general equilibrium REC model. In this model there are two consumption sectors, whereby one is labour intensive and another is capital intensive. The more capital intensive investment sector only introduces technology shocks in the medical imaging market. Our response functions and Monte-Carlo simulation results show that the model can explain 90% of the volatility of consummation relative to GDP, and explain the correlation between consumption and GDP. The results demonstrated the significant correlation between the technological reform in medical imaging and volatility in the labour market on Chinese macro economy development.
Keywords: Medical imaging, technology shock, economic volatility, real economic cycle, computational market analysis, technological reform
