EconPapers    
Economics at your fingertips  
 

Turkish Inflation Dynamics: New Keynesian Phillips Curve (2000-2013)

Leyla Baştav
Additional contact information
Leyla Baştav: BDDK

Iktisat Isletme ve Finans, 2015, vol. 30, issue 354, 57-80

Abstract: This study aims to analyse Turkish economy for the 2000-2013 period with emphasis on inflation dynamics within the framework of New Keynesian Phillips Curve (NKPC). Price equations are estimated by GMM with output gap and growth of output explanatory variables. NKPC is further estimated against detrended marginal cost index and labor income share (and alternatively) employment expectations gap. A new marginal cost index series is constructed representing manufacturing costs in Turkey. NKPC estimations reveal price dynamics is responsive to rate of increase of output rather than its level, revealing hysteresis patterns. The marginal cost index is significant with a small coefficient, whereas the backward looking labor income share is highly explanatory, accounting almost for one third of inflation dynamics.

Keywords: New Keynesian Economics; Inflation Dynamics; Phillips Curve Relation; Time Series Analysis; GMM Estimation. (search for similar items in EconPapers)
JEL-codes: E12 E31 E23 (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations 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: https://EconPapers.repec.org/RePEc:iif:iifjrn:v:30:y:2015:i:354:p:57-80

Ordering information: This journal article can be ordered from
http://www.iif.com.t ... ew/iif.2015.354.4431

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
Series data maintained by Ali Bilge ().

 
Page updated 2017-09-29
Handle: RePEc:iif:iifjrn:v:30:y:2015:i:354:p:57-80