Intertemporal CGE Analysis of Income Distribution in Turkey
Aykut Yakut and
Ebru Voyvoda ()
No 1703, ERC Working Papers from ERC - Economic Research Center, Middle East Technical University
This study focuses on the effects of public policies on the size distribution of income in Turkey. To this end, an intertemporal dynamic equilibrium model with heterogeneous agents in a small open economy framework is constructed. This study serves several extensions to the literature via its algebraic structure and the calibration process in which various micro-level data sets are utilized. The results reveal that, in line with the previous findings of the literature, increasing budget allocations to unilateral social transfer programs has no significant effect on the size distribution of income and has adverse effects on the labor market decisions of relatively poor laborers. On the contrary, subsidizing the cost of labor has positive impacts on labor supplies and the size distribution of income improves in favor of relatively poor households.
Keywords: Income distribution; Redistributive policies; Internal migration; Intertemporal CGE (search for similar items in EconPapers)
JEL-codes: D33 D58 D91 D92 H23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ara, nep-cmp and nep-cwa
Date: 2017-02, Revised 2017-02
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Persistent link: https://EconPapers.repec.org/RePEc:met:wpaper:1703
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