The Relationship Between the Health Services Price Index and The Real Effective Exchange Rate Index in Turkey: A Frequency Domain Causality Analysis

Mustafa Ozer (), Veysel Inal () and Mustafa Kirca ()
Additional contact information
Mustafa Ozer: Anadolu University, Faculty of Economics and Administrative Sciences, Department of Economics, Eskisehir, Turkiye
Veysel Inal: Sakarya University, Faculty of Political Sciences, Department of Public Finance, Sakarya, Turkiye
Mustafa Kirca: Ordu University, Unye Faculty of Economics and Administrative Sciences, Department of Economics, Ordu, Turkiye

EKOIST Journal of Econometrics and Statistics, 2026, vol. 0, issue 36, 21-41

Abstract: This paper examines whether the causal relationship between the health care price index and the real exchange rate index is temporary or permanent. To do this, we first apply the Toda- Yamamoto causality test with a structural break and then continue with frequency domain causality tests based on the Toda-Yamamoto causality test with a structural break. The results of the Toda- Yamamoto causality test with a structural break indicates that there is causality running from the real exchange rate index to the health care price index. Moreover, the frequency domain causality test results based on the Toda-Yamamoto causality test with a structural break provide evidence that the real effective exchange rate causes temporarily (in the short-and medium term) to the health care price index. The effect of the real exchange rate index on the health care price index lasts between 2 months and 8.37 months. These findings imply that there is a significant exchange rate pass-through in health care inflation in the short-and medium term. Thus, the health authorities should take into account these findings when planning health care policies in Turkey, especially health care services heavily dependent on imported materials.

Keywords: Health Inflation; Exchange Rate Pass-through; Frequency Domain Causality; Toda-Yamamoto Causality Test; Health Sector in Turkey (search for similar items in EconPapers)
Date: 2026
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/BEB947D1B0A74C998D619D3CABFCC189 (application/pdf)
https://iupress.istanbul.edu.tr/en/journal/ekoist/ ... n-causality-analysis (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ist:ekoist:v:0:y:2022:i:36:p:21-41

DOI: 10.26650/ekoist.2022.36.1108803

Access Statistics for this article

EKOIST Journal of Econometrics and Statistics is currently edited by Aycan HEPSAĞ

More articles in EKOIST Journal of Econometrics and Statistics from Istanbul University, Faculty of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Istanbul University Press Operational Team (Ertuğrul YAŞAR) ().