Measuring financial stress in Turkey

Emrah Çevik, Selahattin Dibooglu and Turalay Kenc

Journal of Policy Modeling, 2013, vol. 35, issue 2, 370-383

Abstract: This study examines episodes of financial stress and develops a financial stress index for the Turkish economy for the 1997–2010 period. We consider various variables that summarize different aspects of financial conditions in the economy to gauge financial stress. We construct the index and show that financial stress affects economic activity significantly. Specifically, the index is a leading indicator of economic activity in Turkey. We then discuss how information provided by the financial stress index can be used to fine tune macroeconomic policy.

Keywords: Financial crises; Financial pressure; Economic indicators; Business cycles (search for similar items in EconPapers)
JEL-codes: C43 E32 G01 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (45)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0161893812000865
Full text for ScienceDirect subscribers only

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:eee:jpolmo:v:35:y:2013:i:2:p:370-383

DOI: 10.1016/j.jpolmod.2012.06.003

Access Statistics for this article

Journal of Policy Modeling is currently edited by A. M. Costa

More articles in Journal of Policy Modeling from Elsevier
Bibliographic data for series maintained by Catherine Liu ().