Yeni Klasik kurama göre bütçe politikalarının değerlendirilmesi

An evaluation of New Classical arguments on budget policies

Faik Bilgili

MPRA Paper from University Library of Munich, Germany

Abstract: The New Classical theorem asserts that (a) the individuals with rational expectations do not change their consumption levels unless the expected permanent income changes, and, (b), thusly, tax and/or debt policies are not significant on consumption decisions of the individuals, at least in the long term. This paper analyzes if demand sided fiscal policies are efficient or not by observing the Turkish data for the period 1988:4-1999:1, and, the US data for the period 1980:1-1994:2. The paper follows impulse-response (IR) functions through VAR models in which consumption, GDP, tax and debt series are employed. The IR output reveals that the reactions were in the form of mirror images of each other. The paper, hence, conducts (i) the tests for the null of equal variances, (ii) pooled variance test, and, (iii) the test for the null of different variances. The relevant results yield that the mean trends of responses are equal to each other, and, that the difference between the means of the responses is equal to zero. The paper, thusly, may claim that the Turkish and US data confirm the New Classical theorem.

Keywords: New Classical theorem; rational expectations; impulse-response functions; transversality condition; budget policy; the USA; Turkey (search for similar items in EconPapers)
JEL-codes: B2 B3 C12 C13 C15 C32 D11 D84 E13 E21 (search for similar items in EconPapers)
Date: 1999
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in The Papers of IVth National Conference on Econometrics and Statistics held by Marmara University, Belek (1999) 551-571. 1.1(1999): pp. 551-571

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https://mpra.ub.uni-muenchen.de/80808/9/MPRA_paper_80808.pdf revised version (application/pdf)

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