EconPapers    
Economics at your fingertips  
 

Economic Policy Uncertainty in Turkey

La-Bhus Jirasavetakul and Antonio Spilimbergo

No 13352, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Uncertainty over economic policy plays a key role in economic outcomes. But evidence and quantification for emerging markets are elusive because of measurement and reverse causality issues. In this paper, we construct a news-based economic policy uncertainty (EPU) index for Turkey and assess how it affects Turkish firms. To disentangle the issues of endogeneity and reverse causality, we use a difference-in-differences approach. In sectors with large irreversible investment EPU has a greater effect on growth, investment, and leverage. The results are robust to different definitions of investment irreversibility, lag structure, and selection of sectors.

Keywords: diff-in-diff estimation; economic uncertainty; employment growth; firm-level; Investment Decisions; leverage strategies; policy uncertainty; sector-level; Turkey (search for similar items in EconPapers)
JEL-codes: D80 E22 E66 L20 M51 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ara and nep-mac
Date: 2018-12
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=13352 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: Economic Policy Uncertainty in Turkey (2018) Downloads
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:cpr:ceprdp:13352

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... rs/dp.php?dpno=13352

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2019-03-31
Handle: RePEc:cpr:ceprdp:13352