Economics at your fingertips  

The effects of fiscal policy shocks on output in Turkey: SVAR analysis

Cem Çebi ()

Iktisat Isletme ve Finans, 2010, vol. 25, issue 290, 9-34

Abstract: This paper examines the dynamic effects of fiscal policy shocks on the Turkish economy using a three-variable structural vector autoregressive (SVAR) model for the period 1987:q1 – 2005:q4. The first differences of the variables are used, but the long-run relationship between the levels of the variables is also taken into account. In this paper, the strength of output responses to fiscal policy shocks, their persistence and timing were investigated. Following Blanchard and Perotti (2002), the identification of fiscal policy shocks is achieved by exploiting decision lags in fiscal policy and imposing reasonable restrictions on the revenue and spending elasticity to output. Consistent with the standard macroeconomic theories, it is found that while a positive spending shock increases output, a positive revenue shock decreases it.

Keywords: Fiscal Shocks; SVAR (search for similar items in EconPapers)
JEL-codes: E62 H30 (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:

Ordering information: This journal article can be ordered from ... ew/iif.2010.290.2667

Access Statistics for this article

Iktisat Isletme ve Finans is currently edited by Ali Bilge

More articles in Iktisat Isletme ve Finans from Bilgesel Yayincilik
Bibliographic data for series maintained by Ali Bilge ().

Page updated 2021-03-28
Handle: RePEc:iif:iifjrn:v:25:y:2010:i:290:p:9-34