The Dynamic Relationship between China’s Economic Cycle, Government Debt, and Economic Policy

Round 1

Reviewer 1 Report

First of all, I want to congratulate the authors on an interesting article. The problem stated is important and has been solved in an inspiring way.

However, in order for the paper to bring more value added, it would be worth to discussed the obtained results in more detail. It would be particularly desirable to evaluate the 1st, 2nd and 3rd conclusion. Section 4. Discussion and Conclusion, in its present form, contains only generalized observations. I do not question their validity, but in my opinion, it is necessary to discuss these findings more broadly on the basis of economic and financial theory (with the use of relevant literature), so that both their assessment and recommendations for monetary and fiscal policy could have been presented. I think it has to be done in a separate Section 4. Discussion, while the final conclusions and recommendations should be included in Section 5. Conclusion.

I also ask the Authors to carefully check the text in terms of editorial requirements, as there are occasional shortcomings in this respect.

Author Response

Please see the attachment.

Author Response File: Author Response.pdf

Reviewer 2 Report

Comments on

The dynamic relationship between China's economic cycle,

government debt, and economic policy (1535285)

Thank you for all the work done, the study is interesting and well rounded. This paper  combine 10 economic constraints and build a 5-variable SVAR model based on China's 10 time series data of 1978-2017 to test dynamic relationship between China's economic cycle, government debt, and economic policy. The paper present sound empirical findings that are embed in previous literature. However, the section 2 do not pursue the reader about the novelty of the paper. In general, I suggest major revision before publication of the paper. Here are several questions and friendly recommendations:

(1) The summary and the conclusion are different, and the author should distinguish them in detail.

(2) In the introduction section, authors should more fully describe the significance of this paper, i.e., the motivation for this paper.

(3) The structural arrangement needs to be shown in the last part of the paper introduction.

(4) A richer literature review on this topic should be given.

(5) A summary of previous studies should be presented in the last part of the literature review to obtain the research direction of this paper.

(6) The selection of economic policy indicators should be given a detailed definition. Otherwise, it is difficult for the readers to detail the accuracy of the findings of this paper.

(7) Discussion and conclusion should be separated.

(8)Strong policy implications should be provided.

(9) The research limitations and research directions should be given to help the reader to do related research in the future.

(10) Authors should introduce previous studies to compare with the findings of this paper.

Author Response

Please see the attachment.

Author Response File: Author Response.pdf

Round 2

Reviewer 1 Report

The paper looks good, but it would be valuable to link the considerations in the "Discussion" section to the mainstream of the research presented in the article more closely. The results are interesting. The point is to interpret them in relation to economic literature and to show it in the "Conclusions" as well.

Author Response

Dear Reviewer #1,

Thank you very much for your suggestions. Please check Lines 357-365, 390-401, 424-433, and 446-450 for the revisions. Sincerely, thank you again for letting me feel the joy of the improved quality of our article.

Best regards,

Dr. Yifu, Yang

Reviewer 2 Report

The author has made a strict and careful revision of this paper. The revised paper offers important references to relevant policy makers. 

Author Response

Dear Reviewer #2,

We greatly appreciate your help concerning the improvement of this paper. Many thanks for your kind consideration of our manuscript.

Regards,

Dr. YANG, Yifu