Testing the Lucas Critique for the Turkish Money Demand Function

Levent Korap () and Metin Yildirim
Additional contact information
Metin Yildirim: Gaziantep Üniversitesi

Iktisat Isletme ve Finans, 2012, vol. 27, issue 318, 57-82

Abstract: This paper aims to test the prevalence of the Lucas critique by use of an applied modelling approach. The Turkish narrow money demand is chosen for investigation purposes and an extensive statistical-based econometric application has been carried out to observe whether the model in question has been exposed to the content of such a critique. The results confirm the theory to explain the behavioral foundations of aggregate monetary economics approaches and reveal that no evidence can be found in favor of the nonrejection of the Lucas critique that leads us to infer that the modelling attempt can be considered by the researcher a feedback model which is able to encompass a whole class of expectation models.

Keywords: Money Demand; Lucas Critique; Turkish Economy (search for similar items in EconPapers)
JEL-codes: C32 E41 E61 (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (1)

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

Related works:
Working Paper: Testing the Lucas critique for the Turkish money demand function (2012)
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:iif:iifjrn:v:27:y:2012:i:318:p:57-82

Ordering information: This journal article can be ordered from
http://www.iif.com.t ... ew/iif.2012.318.3385

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 ().