Impact of Easing Restrictions on Restaurant Inflation: Normalization Processes in Türkiye during COVID-19

Ceren Eldemir and Serdar Yurek

Working Papers from Research and Monetary Policy Department, Central Bank of the Republic of Turkey

Abstract: Among the measures implemented in Türkiye during the COVID-19 pandemic, extensive restrictions were applied for restaurants, such as prohibitions regarding dine-in services. As the pandemic was brought under control to a certain degree, restrictions were loosened and normalization processes were begun. In this study, we estimate the causal impact of those normalization processes on restaurant pricing via regression discontinuity design. During the normalization processes that have begun following three main periods of restrictions, an increase of approximately 1.11% and 1.37% in the prices of food services occurred for the first and third normalization periods, respectively, whereas no significant impact is found for the second period.

Keywords: Firm behaviour; Inflation; Microeconometrics (search for similar items in EconPapers)
JEL-codes: C50 E31 L20 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-mon
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Persistent link: https://EconPapers.repec.org/RePEc:tcb:wpaper:2303

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