Quality Growth versus Inflation in Turkey

Yavuz Arslan and Evren Ceritoğlu

Working Papers from Research and Monetary Policy Department, Central Bank of the Republic of Turkey

Abstract: We estimate average quality growth and upward inflation bias for a set of 51 goods in Turkey by using 7 waves of Household Budget Survey from 2003 to 2009 and TURKSTAT prices. We employ instrumental variables approach introduced by Bils and Klenow (2001). We find that average quality growth in Turkey is 3.93 percent. Of this 3.93 percent, 2.28 percent is not netted out by TURKSTAT. Consequently, for the set of goods that we study, the estimated inflation bias is 2.28 percentage points.

Keywords: Quality bias; Inflation rates (search for similar items in EconPapers)
JEL-codes: D12 E31 (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-ara, nep-cba and nep-cwa
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Citations: View citations in EconPapers (5)

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Journal Article: Quality Growth Versus Inflation in Turkey (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:tcb:wpaper:1121

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